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Why Did Adobe Buy Macromedia?

option8 writes "According to John Dvorak the reasoning behind Adobe's recent (and to many, surprising) purchase of Macromedia for $3.4 billion is that Adobe was afraid Microsoft was going to do it first. An interesting look at the thinking and attitude of Adobe from someone who's been following them for a long time. From TFA: "So, mostly out of fear, Adobe buys its main competitor and now must shoehorn the company into its unfortunate not-invented-here corporate culture. (This aspect of Adobe is another story in itself.)""

23 of 563 comments (clear)

  1. MS Paint by fembots · · Score: 5, Funny

    Like the article said, Adobe was simply acting out of fear, uncetainty and doubt. Microsoft already has a competent flagship MS Paint, it doesn't need anything else.

    And what about Gimp? Is it really not a threat to Adobe at all?

    It'll be fun to watch if Microsoft hinted that it's looking at forking Gimp, Adobe will go nuts about that!

    1. Re:MS Paint by deranged+unix+nut · · Score: 5, Insightful

      Take a look at the latest version of Digital Image by Microsoft...it is rapidly improving and is almost a competitor to the CS edition of Photoshop...almost.

      Microsoft has also been trying to keep the "run hungry, everyone else is after you" mentality for a number of years...although I think the beancounters and frustrated managers are starting to take over. :)

    2. Re:MS Paint by mrtroy · · Score: 5, Insightful

      I read an interesting article about software companies. It stated that you can never underestimate a competitor, even if they are not currently a direct competitor, that can put hundreds of millions of profit into the bank every quarter.

      What if Microsoft did try to directly compete with Adobe? They WOULD be successful despite their product's quality, they have a massive market grip on the entire software field.

      Microsoft does not make amazing software that does things nobody else can. Microsoft provides a massive sales push for any product they decide to develop, which usually is similar to another existing piece of software.

      Look at Office vs Wordperfect, Excel vs Lotus, etc.

      So, I disagree with Dvorak. You do need to worry about Microsoft, no matter where you are in the software field, if you are a large (read multi billion dollar) company

      --
      [I can picture a world without war, without hate. I can picture us attacking that world, because they'd never expect it]
    3. Re:MS Paint by Axoiv · · Score: 5, Insightful

      You've got to be kidding. Why do you think MS Office does _not_ feature PDF-export like OpenOffice?

      It's because MS wants the DOC-format to be standard, _not_ PDF. If PDF becomes the standard for reports, resumes, theses etc. Then MS Office will become less important ==> Less used ==> Less bought.

      > close to zero overlap.

      You're nowhere near to the truth!

    4. Re:MS Paint by ErroneousBee · · Score: 5, Insightful

      They are competitors.

      The browser wars wernt about the browser, they were about the file formats, and Microsoft lost. HTML rules the web, and MS Docs on the web are a sign of corporate incompetance.

      But now look. see how many PDFs there are out there. Eventually corporations will start working in PDF directly, rather than farming out the PDFication of data to a specialist department. They will start liscencing Framemaker to all its staff. When that happens, MS Office starts to become duplicated functionality and will ose market share.

      So thats why Adobe and MS are in competion, they both want to be the De-facto web publication format.

      --
      **TODO** Steal someone elses sig.
  2. Because only by joining forces by Anonymous Coward · · Score: 5, Funny

    Can Flash and PDF kill the web. Muahahahahahahaha.

    1. Re:Because only by joining forces by caryw · · Score: 5, Interesting

      exactly anonymous coward.
      I was going to write my take on it but a blogger by the name of Jesse Ezell has already put it very nicely. Here's the text of his blog entry:

      My Thoughts on the Adobe-Macromedia Deal

      It is pretty clear from the acquisition that Adobe is going to be making a major push into web media. They have tried a few times with tools like InDesign and LiveMotion to make some progress, but Macromedia has been extremely successful at fending off their attacks with Dreamweaver and Flash. As a result, Adobe has been able to rule the desktop publishing market and Macromedia has been able to rule the web content market. The mix of the two companies is going to make one hell of a powerful media creation beast. Ok, but that is the obvious stuff. Obviously anyone who buys out Macromedia wants Flash, because Flash is what Macromedia is all about. What else might this mean?

      If you look at Macromedia's actions over the past year or so, it seemed pretty likely that they were looking for a buyer. They were gradually buying up smaller companies to add to their arsenal and make themselves more attractive to potential buyers. Choosing eHelp and Presedia as acquisitions tells me that perhaps Adobe is interested in making some moves into the super hot eLearning market. Right now, all Adobe really has going for them is PDF--which is a pretty darn valueble assest, but is really more suited for the web of the past than the web of the future. PDF was great when web pages were static, but web pages aren't static anymore and PDFs are boring these days. The next generation web is all about media, and that is where Flash comes into the picture. eHelp and Presedia were two companies in the front of the eLearning pack, and the timing of these two acquisitions is just too close to mean nothing. However, this also means that eHelp / Presedia customers are in for even more fun as their products all get jumbled up in yet another acquisition. Even Macromedia didn't continue to support all of eHelp's products...

      For designers, this acquisition is definately a good thing. They get the best of both worlds as Macromedia and Adobe tag team anyone who attempts to challenge them. Developers, on the other hand, may not have it so lucky. What is to become of Cold Fusion? What about Flex? One of my long-standing complaints about Macromedia is that they don't understand developers. Surely this isn't going to be helped by Macromedia merging with an even more designer centric company. I definately trust the management at Adobe a bit more than Macromedia's management, but you can't help but realize that Adobe really doesn't have a lot of experience with developer centric software. Personally, I would have much rather seen Microsoft acquire Macromedia and give us some kick-ass next generation web tools, but they are too focused on Avalon and XAML right now, so we'll have to leave that to the Xamlon guys or get everyone running Avalon so we can deliver the stuff natively.

      In any case, one thing is certain, watching this play out is going to be very interesting.
      [end]
      --
      Fairfax Underground: Fairfax County chat and discussion forums, with an underground twist

    2. Re:Because only by joining forces by SunFan · · Score: 5, Interesting

      PDF was great when web pages were static, but web pages aren't static anymore and PDFs are boring these days.

      I don't understand this at all. Every form I download from my state government is PDF, for example, often the handy fill-in type. That isn't boring, it's damn useful. Most useful documentation on the web is also distributed as PDF.

      As for Flash, I don't even have it installed, right now. The advertisements were driving me bonkers!

      --
      -- Microsoft is the most expensive commodity operating system and office suite vendor in the marketplace.
  3. They needed a marketing jingle? by Anonymous Coward · · Score: 5, Funny

    To the tune of Yankee Doodle:

    We bought a company out of fear and called in Macradobe!

    I know that somebody can figure out more lyrics on this. It is 4/20 after all.

    1. Re:They needed a marketing jingle? by NanoGator · · Score: 5, Funny

      "We bought a company out of fear and called in Macradobe!"

      Then mister Gates bought us both and told the gov to blow me!

      --
      "Derp de derp."
  4. John Dvorak by rbanffy · · Score: 5, Insightful

    After laughing my way through "John Dvorak Predicts", I have come to understand that, in order to achieve true wisdom, one must learn to ignore everything John Dvorak says.

  5. Re:According to John Dvorak? by Dante+Shamest · · Score: 5, Funny
    I would trust a random guy on slashdot much more than I'd trust Dvorak's insights...

    Trust John Dvorak.

    - Random Slashdot Guy
  6. Yes I RTFA, if you can call it that. by chris_mahan · · Score: 5, Interesting

    Speculatory at best.

    What I see is that Adobe wanted to put flash in pdf and MacroM didn't want to license cheap. So Adobe bought MM to get Flash, and now I see the reverse: Acrobat Reader 8.0 implemented in flash with on-demand font-laguage and all that crap.
    Also, PDF with flash becomes fully animated, media-rich format.

    I think that dreamweaver will essentially become a photoshop add-on. This way, very smart graphic designers will make a beautiful graphic, click on the "Dream-Weave-it" button, and presto: A complete web page with rollovers from layers.

    As far as the Macromedia people, they had best get ready to wear the Adobe hat or find themselves on the street.

    What else. Flash. Yes, back to Flash. If I email you a PDF document, and now it's on your PC, and you open it, and flash is inbedded in it, and you're connected to the net via your ever-present dsl line, flash can actually go to the web and pull content. So Adobe Acrobat Reader has now become a web browser, since a well-designed flash can emulate a website.

    Finally, I think Adobe is in decent shape, but they have to be careful, because while they had photoshop and acrobat, they were still essentially in a lucrative niche market. They have become a bigger fish, and they are going to find that they have a lot more competitors. And just perhaps they might find that the best macromedia people will start working elsewhere and competing too.

    Was my post speculative enough for you?

    --

    "Piter, too, is dead."

  7. Dvorak at his BEST... IDLE-TIME PROCESS by Anonymous Coward · · Score: 5, Funny
    " IDLE-TIME PROCESS. Once in a while the system will go into an idle mode, requiring from five minutes to half an hour to unwind. It's weird, and I almost always have to reboot. When I hit Ctrl-Alt-Delete, I see that the System Idle Process is hogging all the resources and chewing up 95 percent of the processor's cycles. Doing what? Doing nothing? Once in a while, after you've clicked all over the screen trying to get the system to do something other than idle, all your clicks suddenly ignite and the screen goes crazy with activity. This is not right."

    Yup, he really said that

    OH SHIT... SYSTEM IDLE PROCESS is EATING 100% of my CPU !?!? Gotta run.
  8. Re:According to John Dvorak? by ZeroOne42 · · Score: 5, Funny

    ..but don't trust the random slashdot guy.

    - Random Slashdot Guy

  9. Dvorak is full of it by Stinky+Fartface · · Score: 5, Insightful

    This is a poorly argued point even for Dvorak. Whether or not the buy-out is a good move for Adobe, the idea that they would pay 3.4 bil for a company just to avoid Microsoft is fairly ludicrous. And his assertion that Flash is the program that "powers those annoying web animations" is about as stupid as saying Photoshop is responsible for "those dumb pictures." Personally, I am excited about the prospect of Adobe developing Macromedia's assets. Much of Macromedia's products never hit their targets squarely, neither designers nor developers. The artistic feature set of Flash never radically grew from the state it was in when it was called "FutureSplash" when Macromedia bought it, and as a development platform it underperformed. Adobe certainly has it's fair share of duds in it's portfolio but they have nicely developed their bedrock products, version after version. Some may complain about bloat in Photoshop, but I can say as someone who uses it every day that their feature set is well thought out. And it remains one of the most elegant pieces of software ever assembled. Perhaps Illustrator, Premiere Pro, and After Effects haven't developed as quickly as some would like, but they remain excellent pieces of software. And Adobe has managed to update them smartly. It remains to be seen as to whether they can manage web design and development as well as video and print, but I am excited as to the prospects of making even better dumb web animations.

  10. Actually, Microsoft should be worried by 93+Escort+Wagon · · Score: 5, Interesting

    I heard a commentator on National Public Radio talk about this merger, and he made lots of sense. PDF has been a defacto standard for web documents for quite a while, and Flash has been gaining lots of ground fast when it comes to streaming media. Basically he said that now, with both PDF and Flash, Adobe Systems will be well positioned to do a complete end-around Microsoft. With regards to Web apps, Adobe will now have the muscle and means to treat the OS as just a commodity. It won't matter who's OS you're running because you'll still be able to use Adobe's products in your web browser.

    To a company like Microsoft that's invested itself totally into a "Windows Everywhere" philosophy, that's gotta seem very ominous.

    --
    #DeleteChrome
  11. Re:According to John Dvorak? by Random+Slashdot+Guy · · Score: 5, Funny
    Why are you guys impersonating me?

    GP: Trust no one

    --
    - Random Slashdot Guy
  12. Paranoid? Why not? by Alarash · · Score: 5, Informative
    If I were to be the owner of a company that is the leader of its field, I'd worry about Microsoft too. They proved a lot of time that if they want to get into any given market, they can, and the drums will be rolling for them. Because they can afford it. I think the best examples are they behavior when it comes to video games. For some reason, they wanted to create the best flight simulator to date. Boom, they buy flight simulator, throw a few million bucks in the project, and 10 years later, it's still the best flight simulator to exist.

    They also wanted to get into the non-portable consoles industry - traditionnaly owned and led by Japanese companies such as Nintendo, Sega and recently Sony. All other non-japanese companies failed to get into that market. Microsoft announces the Xbox. It costed them millions in terms of investments. In the beginning, they were loosing 100$ for each console they sold. So what? The objective was to make themselves a room in the market, not to make money. They already make money with Windows, Office and other things other companies now totally rely on. The result : Sega is now dead as a console manufacturer, Nintendo is no longer leading the market, and only Sony can really stand up against Microsoft.

    So I guess my point is that, given the billions Microsoft can invest in any given project, they can do whatever they want. They could have offered Adobe's developpers 3 times what they were paid so they would come over. They even could have had them move to another country than the US, so the clauses in their contracts that (I imagine) prevent them to work in another company doing the same thing would be void (I assume here that the devs would be motivated only by cash and not loyalty, but it's not the point, really, because Adobe's developpers are not the only ones with that kind of skill; but they allow a better example). So I think that in the end Adobe made a good move, because they only made Microsoft's eventual objective harder to reach. But not impossible.

  13. HFS!!! by Ralph+Spoilsport · · Score: 5, Informative
    I used to work at Macromedia, and I remember a big company meeting at Pajaro Dunes where they Specifically Announced Adobe as their Main Enemy, and then set about acquiring software to battle them point to point.

    Then we all partied so Hearty that they called the cops on us.

    Macromedia figured out that they would do better by leapfrogging Adobe, and jumping directly into webcentric software. To that end they basically killed off everything that wasn't web centric - xRes died a quick and merciful death, fontgrapher was shelved (and for this they earned incredibley bad karma, because fontLab is a fat POS with a crap UI - although it does rock for font output formats... it's just a world of pain for anyone trying to design anything...), and they killed off FreeHand a few years back and Director's got a tube up its nose.

    They set about buying serverside stuff, like cold fusion, and developed various workflow systems for Dreamweaver, itself an acquisition, called FutureFlash.

    I don't think this acquisition could have happened if MM had not killed off FreeHand and fontographer.

    You can be QUITE certain that now that Adobe owns the codebase, FH and Fog are so completely dead as to be like, deader than dead.

    This is a MAJOR acquisition. This is a MAJOR consolidation in the software market. It is not a time for rejoicing. Expect some very bad things.

    Predictions:

    Adobe will not sell FreeHand.

    Adobe will not sell Fontographer.

    Adobe will kill off Director within 3 years.

    Adobe will "merge" GoLive and Dreamweaver, which will be good for GoLive and bad for Dreamweaver.

    PDF will acquire flash-centric elements - this includes video...

    Adobe will Rule The Roost in publishing (and don't give me any lip about GIMP - GIMP's UI sux ass and it's ability to handle CMYK or (x) plate printing is zero, and Adobe OWNZ that already - this will increase their hold on it.

    Fireworks is TOAST. Dead within a year.

    This is going to require people to completely re-think workflows and processes.

    I for one DO NOT look forward to our Abobe Overlords.

    RS

    --
    Shoes for Industry. Shoes for the Dead.
  14. Wrong Again by BenFranske · · Score: 5, Informative

    I think they actually meant Photoshop Elements, which is the slimmed down consumer version of Photoshop CS, but is still quite usable. Photoshop Album is actually a really terrible piece of software you often see bundled for free with digital imaging devices.

  15. The Ballad of Big Adobe. by flux4 · · Score: 5, Funny

    Ok, here's my best shot. Thanks to the National Institute of Environmental Health Sciences for the lyrics and karaoke music.

    Big Adobe went to town
    Riding with great worry
    "Microsoft might buy our foes
    Goodness let us hurry"

    Big Adobe, buy them out
    Big Adobe dandy
    Mind the lawsuits and the FUD
    And with your cash be handy

    Macromedia went to the web
    With great Flash and vigour
    Then Adobe said to them:
    "We ownz you, start to quiver"

    Big Adobe, buy them out
    Get yourself a trophy
    Buy a business out of fear
    And call it Macradobe

    All you geeks and all you nerds
    Reading this here story
    Remember what the Parent said
    And call it Macradobe

  16. Comment removed by account_deleted · · Score: 5, Informative

    Comment removed based on user account deletion