Adobe/Macromedia Acquisition to Close Dec 3

by , 11:40 AM EST, December 2nd, 2005

Adobe and Macromedia expect to have all of the regulatory clearances necessary to complete Adobe's purchase of Macromedia by December 3, 2006. The acquisition of Macromedia by Adobe began last spring, and will transfer Macromedia's product line to Adobe.

The transaction will be all stock, and Macromedia share holders will receive 1.38 shares of Adobe common stock for each share of Macromedia stock they own.

Macromedia's product line includes Freehand, Dreamweaver, Flash, and several other products that web and graphic designers use daily. The future of these products is uncertain, especially since products like Freehand, which competes with Adobe Illustrator, has received little support from Macromedia in recent years.

Dreamweaver, Macromedia's web development tool, competes with Adobe GoLive in the web design market. Both applications have strong supporters, and Adobe is not yet commenting on its plans for the future of either product.

Obtaining Flash, a web standard for delivering multi-media content to web browsers, is a big feather in Adobe's cap. The company now will control the file format, and the tools to develop for it, something Macromedia historically blocked Adobe from doing.

Adobe will hold a financial analyst meeting on December 15 at 2:00 p.m. Pacific Time to discuss the combined company's outlook for fiscal 2006. It will present its strategy for moving forward in New York City on January 31, 2006.

Adobe stock is currently trading at US$34.84, up 0.96 (2.83%), and Macromedia is trading at $48.04, up 1.54 (3.31%).

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