Written by:2010/10/15 09:53 AM
Well well what do you know. Seems like there are a few rumours circling that Microsoft is makeing a bid to acquire Adobe. People all over the internet are either shocked, scared or ecstatic.
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, as reported by The New York Times
Does this mean that there is a takeover bid, or is it just a plain strategy meeting.
Personally I think it's just hot air. A unfounded rumour.
Holly Campbell, senior director of Adobe’s corporate communications, did not deny the meeting took place. Microsoft said it did not “comment on rumours/speculation.”
Although, Microsoft had considered a buy out several years ago, but held back for fear of the Justice department. Microsoft feared that the Justice Department would most likely block the acquisition on antitrust grounds.
At that time Google and Apple were small boys, Microsoft was the giant. Now with Apple and Google being giants themselves, the competition board might well consider the buy out to be a non competitive merger.
So what could have been discussed at the meeting between Microsoft and Adobe. Well the obvious is the lack of Adobe Flash support by Apple. I see this as a great opportunity for Microsoft and Adobe to form a partnership. This will be like egg in the face of Apple. Which might mean that their decision to diss Adobe Flash could come back and bite them in the you know where.
At the moment I think that the Adobe price is just too big for Microsoft. We are looking at $20-$30 billion USD. Microsoft's largest acquisition was in 2007, when they bought aQuantive for $6 billion.
But then again who knows what goes on behind closed doors?
What are your thoughts? Is there truth in the rumour? Do you think it will work? Are you happy or do you hope it will not take place?
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