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Adobe buys Macromedia for $3.4bn
Contributed by: G3nu1n3, at 4/18/2005 11:48:00 PM.

Adobe has baught Macromedia for $3.4bn.

Shares in Macromedia have risen 10% on news its US rival Adobe is to buy it for $3.4bn (£1.8bn) and integrate its software with its own.

The agreement marks the latest move in the consolidation of the software industry. In December Symantec agreed to buy Veritas in a $13.5bn deal. Under the terms of the acquisition, US-based Macromedia's shareholders will own 18% of the combined business. It will be run by Adobe's chief executive, Bruce Chizen. With the addition of Macromedia's products - which include computer animation, and Dreamweaver and Flash web-design software, for use on the internet and mobiles - Adobe hopes to meet the need from businesses for more integrated software.

Some analysts see Adobe's move as designed to strengthen its position against Microsoft, which is working on software that could challenge Adobe's Acrobat document display software.

Source: BBC News


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