Adobe to Purchase Macromedia for $3.4 Billion
{{date|April 18, 2005}}
[[Image:Macromedia Logo.gif|right|Macromedia logo]]
[[w:Adobe Systems|Adobe Systems, Inc.]] announced today that they will acquire [[w:Macromedia|Macromedia, Inc.]] for an estimated $3.4 billion in stock. Bruce Chizen, the chief executive officer of Adobe said that "Customers are calling for integrated software solutions that enable them to create, manage and deliver a wide range of compelling content and applications -- from documents and images to audio and video.  By combining our powerful development, authoring and collaboration software -- along with the complementary functionality of [[w:Portable Document Format|PDF]] and [[w:Macromedia Flash|Flash]] -- Adobe has the opportunity to bring this vision to life with an industry-defining technology platform."

The acquisition is expected to close in the fall, subject to approval by the stockholders of both companies and regulatory approvals. Under the terms of the agreement holders of Macromedia stock will receive 0.69 shares of Adobe stock for every share of Macromedia stock. Macromedia stockholders are expected to own approximately 18 percent of the combined company.

The two companies have in the past been rivals and some of their products compete in similar niches.  For example, both [[w:Adobe Photoshop|Adobe Photoshop]] and [[w:Macromedia Fireworks|Macromedia Fireworks]] are graphics editing programs, and both [[w:Adobe GoLive|Adobe GoLive]] and [[w:Macromedia Dreamweaver|Macromedia Dreamweaver]] are webpage design applications.

In the combined company, the current CEO of Adobe, Chizen will continue as CEO. Stephen Elop, president and CEO of Macromedia, will become president of worldwide field operations.  The combined company will keep the name "Adobe", and will focus on integration and growth.  

Additional details are available from [http://www.adobe.com/aboutadobe/invrelations/adobeandmacromedia.html Adobe Investor Relations].

== Sources ==

*{{source|url=http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20050418005475&newsLang=en
|title=Adobe to Acquire Macromedia
|author=
|pub=Business Wire
|date=April 18, 2005}}

*{{source|url=http://www.businessweek.com/ap/financialnews/D89HST800.htm?campaign_id=apn_tech_down
|title=Adobe to buy Macromedia in $3.4B deal
|author=Matthew Fordahl, AP Technology Writer
|pub=Business Week/AP
|date=April 18, 2005}}

== External link ==

* [http://www.adobe.com/aboutadobe/invrelations/adobeandmacromedia.html Adobe Investor Relations]

 

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[[Category:North America]]
[[Category:Economy and business]]
[[Category:Computing]]
[[Category:Published]]
[[Category:Science and technology]]
[[Category:Adobe Systems]]

[[es:Adobe compra a Macromedia]]
[[it:Macromedia acquistata da Adobe]]
[[pl:Adobe wykupiło Macromedia za ponad 3 miliardy dolarów]]
[[pt:Adobe vai adquirir a Macromedia por 3,4 bilhões de dólares]]
Macromedia logo
Adobe Systems, Inc. announced today that they will acquire Macromedia, Inc. for an estimated $3.4 billion in stock. Bruce Chizen, the chief executive officer of Adobe said that "Customers are calling for integrated software solutions that enable them to create, manage and deliver a wide range of compelling content and applications -- from documents and images to audio and video.  By combining our powerful development, authoring and collaboration software -- along with the complementary functionality of PDF and Flash -- Adobe has the opportunity to bring this vision to life with an industry-defining technology platform."

The acquisition is expected to close in the fall, subject to approval by the stockholders of both companies and regulatory approvals. Under the terms of the agreement holders of Macromedia stock will receive 0.69 shares of Adobe stock for every share of Macromedia stock. Macromedia stockholders are expected to own approximately 18 percent of the combined company.

The two companies have in the past been rivals and some of their products compete in similar niches.  For example, both Adobe Photoshop and Macromedia Fireworks are graphics editing programs, and both Adobe GoLive and Macromedia Dreamweaver are webpage design applications.

In the combined company, the current CEO of Adobe, Chizen will continue as CEO. Stephen Elop, president and CEO of Macromedia, will become president of worldwide field operations.  The combined company will keep the name "Adobe", and will focus on integration and growth.  

Additional details are available from  Adobe Investor Relations.

*

es:Adobe compra a Macromedia
it:Macromedia acquistata da Adobe
pl:Adobe wykupiło Macromedia za ponad 3 miliardy dolarów
Adobe vai adquirir a Macromedia por 3,4 bilhões de dólares
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