Saturday, October 23, 2010

Adobe acquisition of Macromedia will in turn form giant monopolies


Adobe will be 3.4 billion U.S. dollars of the price of the stock exchange to acquire Macromedia, content creation tools to form a Big Mac.

The two sides announced this week at the local time of this transaction is expected that this transaction will be completed in the fourth quarter of this year, it also requires shareholder approval of both parties. Bruce will continue as CEO of Adobe, Shantanu Narayen remains as president and chief operating officer. Macromedia CEO Stephen will join Adobe, served as president for mobile services.

Bruce said in a statement, by combining our powerful development, authoring and collaboration tools, combined with the complementary PDF and Flash, Adobe will have the opportunity to provide industry-leading platform for content creation.

Bruce pointed out that the combined company may take measures to reduce costs, which means that two companies of some products may be abandoned. He pointed out that two motivation for the deal to develop new business and markets.

The two companies overlap in the products are in graphics, Adobe's Photoshop and Illustrator ahead of Macromedia's Fireworks and Freehand; in Web design, Macromedia's DreamWeaver is ahead of Adobe's GoLive.
Initial reaction from users is negative. A creative officer, said it appears one can monopolize the market for Big Mac. The merger may have good software, but the market there will be competition? He said no to open source Flash, Macromedia's market power has been greatly weakened.







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