WASHINGTON, DC - On Thursday, shares for Adobe Systems soared 17 percent following a New York Times article
suggesting that Microsoft would acquire the software company. Soon
afterward, however, Kara Swisher at All Things Digital deemed the deal "nonsense" citing "numerous sources at both companies." After throwing a wet rag on the Times article (and consequently lowering Adobe's shares),
Swisher advanced the idea that Google was actually much more likely to
acquire Adobe. The reportage from both publications has spurred a great
deal of strategic musing over which tech giant would benefit most from
an Adobe acquisition:A Microsoft Acquisition Makes Sense, writes Horace Dediu
at Asymco: "Adobe is one of the last surviving desktop software
companies. So is Microsoft. Consolidation happens when an industry
matures and excess capacity and excess overhead can be squeezed out of
the value chain, giving a temporary burst of earnings growth. So, in
this way of thinking, recognizing that the sun is setting on desktop
software, a merger of old schools of thought may make sense. Rather like
Sun and Oracle or HP and Compaq."The Justice Department Would Probably Green Light It, writes Ed Hansberry
at Information Week: "An acquisition by Microsoft would have been
unthinkable a decade ago. Back then, the justice department was
considering breaking up the software giant, something Judge Thomas
Penfield Jackson ordered but was reversed on appeal, being found guilty
of misconduct. Today though, Microsoft isn't the giant it was in 2000...
It is doubtful the US government would put up too much of a fuss if the
two companies got together. If Microsoft did acquire Adobe, would it
matter? While Flash is important, I don't see it being a deciding factor
for too many people on what phone they buy, and with HTML5 on the
horizon, Flash will have less importance in the coming years."A Microsoft Acquisition Is Not in the Works, writes Kara Swisher at All Things Digital: It
is kind of hard to do an acquisition when “Steven A. Ballmer,
Microsoft’s chief executive, recently showed up with a small entourage
of deputies at Adobe’s offices to hold a secret meeting with Adobe’s
chief executive, Shantanu Narayen.”Memo to the Times: When
there is an acquisition afoot–in my experience–it’s all private
airplanes and law offices and not a company HQ visit by the very loud
and very noticeable Ballmer, the exact polar opposite of a shrinking
violet. Full Story »