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Why Apple Should Acquire Adobe

Posted by Zonk on from the maybe-one-day-they'll-care-about-games-too dept.

aabode writes "OSWeekly.com's Brandon Watts suggests that Apple should acquire Adobe. Why? 'While Apple has done a great job of developing media applications for beginners (the iLife suite is a good example of this), they could use a boost on the professional side. Granted, Final Cut Studio has become the standard when it comes to professional video editing, and Logic Studio is a great professional solution for editing audio, but what about the graphics and Web design segments of the market? If people want tools to support these interests on the Mac, then they turn to Adobe.'"

1 of 410 comments (clear)

  1. Within the bounds of reason... by jordandeamattson · · Score: 5, Informative

    This proposal isn't like most out there (small fry buying company 10 times their size, etc.) which are completely outside the realm of possibility.

    ADBE's market cap is 16% (27 Billion) of AAPL's market cap (167 Billion). APPL has $15 Billion in cash on the books, so this couldn't be an all cash deal, but it could be a mix of stock and cash or an all stock deal.

    It is worth considering an AAPL acquisition of ADBE. Of course, AAPL would have to offer a premium. If I was putting together the deal, I would offer 1 AAPL share for 4 ADBE shares and $10 a share in cash.

    This would value ADBE at 46.75 + $10 = $56.75 a share. This is an 18% permium to today's price. That is a reasonable premium on ADBE's current valuation.

    Yours,

    Jordan