Adobe to Purchase Macromedia for $3.4 Billion

There are no reviewed versions of this page, so it may not have been checked for adherence to standards.

Monday, April 18, 2005

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.

Sources

"Adobe to Acquire Macromedia" — Business Wire, April 18, 2005

Matthew Fordahl, AP Technology Writer. "Adobe to buy Macromedia in $3.4B deal" — Business Week/AP, April 18, 2005

External link

Adobe Investor Relations

This page is archived, and is no longer publicly editable.

Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.