alik_05
04-19-2005, 01:31 AM
Adobe Buys Macromedia for $3.4 Billion - [General]
In a stock deal valued at $3.4 billion, Adobe on Monday announced it has acquired rival Macromedia. The merger, which brings together Adobe's ubiquitous PDF document format and graphics suite with Macromedia's market-leading animation tools, pits the combined company squarely against Microsoft.
Under the buyout terms, Macromedia shareholders receive 0.69 shares of Adobe for every Macromedia share. The number represents a 25 percent premium over Macromedia's stock price. The deal is expected to close in the fall pending regulatory approvals.
Adobe CEO Bruce Chizen will retain his position while Macromedia CEO Steven Elop becomes Adobe's president of worldwide field operations.
Although there is quite a bit of overlap in the software developed by the two companies, both said the acquisition is focused on growth, not cutting costs. However, no specifics were given as to the fate of each company's product lines or development focus.
In a stock deal valued at $3.4 billion, Adobe on Monday announced it has acquired rival Macromedia. The merger, which brings together Adobe's ubiquitous PDF document format and graphics suite with Macromedia's market-leading animation tools, pits the combined company squarely against Microsoft.
Under the buyout terms, Macromedia shareholders receive 0.69 shares of Adobe for every Macromedia share. The number represents a 25 percent premium over Macromedia's stock price. The deal is expected to close in the fall pending regulatory approvals.
Adobe CEO Bruce Chizen will retain his position while Macromedia CEO Steven Elop becomes Adobe's president of worldwide field operations.
Although there is quite a bit of overlap in the software developed by the two companies, both said the acquisition is focused on growth, not cutting costs. However, no specifics were given as to the fate of each company's product lines or development focus.