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Microsoft Buying Adobe?

uk.reuters.com

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Re: Microsoft Buying Adobe?

#131

Post by nickelplate »

chollida1 wrote: post #103
mcbain wrote: post #67

Earlier quoted context omitted.

What is Microsoft's track record for spinning off companies? The Photoshop/CS part of Adobe is somewhat profitable, correct? Would MS let it go (even for a bucket of cash)?

The Rare team was spun out of Microsoft. They were the video game company that Microsoft bought from Nintendo. They were responsible for Golden Eye, Conquer, and Perfect Dark. I'm not sure if this would be considered a successful spin off though as Microsoft bought them when they were, IMHO, at their peak.

I would not count Rare as a good acquisition: Microsoft bought them for $375M, and they haven't produced a single hit since. To put that in perspective, Bungie (a much smaller studio than Rare at the time) was acquired for less than $40M, and their games and IP generated over $1B (and counting) in revenue for Microsoft.

Re: Microsoft Buying Adobe?

#132

Post by jmulho »

iamelgringo wrote: post #105
pchristensen wrote: post #93

Earlier quoted context omitted.

Not disagreeing, but Innovators Dilemma theory says that companies that are about to be disrupted are enjoying the greatest profits and margins ever. The problem is that the reason the profits are so high is that they've shed their less profitable divisions and products that might grow into the next big innovation. Let's say something disrupts MSFTs Office and shrinks its revenue - what do they have that could replac…

what do they have that could replace that? Sharepoint, SQLServer, Windows 7, Windows Server, Windows Virtual Server, CRM, Exchange Server, XBox, Xbox live, Bing, Zune, Microsoft Automotive platform, Win 7 phone. Microsoft has one of the most diverse revenue streams of any software company. They're going to be around for a while. Google should actually be more afraid of disruptive technologies. Their revenue is primar…

I agree. Microsoft shouldn't be concerned about the fact that no one likes their products because they make so many different products that no one likes.

Re: Microsoft Buying Adobe?

#133

Post by pmichaud »

narkee wrote: post #89
zokier wrote: post #39

Earlier quoted context omitted.

Gotta love stock markets. A rumor arises of two CEO's secretly meeting, and stocks skyrocket instantly. I'd assume that nobody actually knows what they were discussing, if they even met. Wouldn't be much of a secret meeting otherwise.

It's really interesting, when you think about it as a system that changes in response to observation. Can you imagine if physical systems worked like that? That observed physical phenomena would change in response to what the experimenter/observer thinks will happen?

Yeah, that's sort of what actually does happen.

Re: Microsoft Buying Adobe?

#134

Post by krf »

olalonde wrote: post #73

Microsoft should start thinking about acquiring a web company instead. One day, they will look back and realize that, in retrospective, they shouldn't have held on to the desktop. An analogy could be made with newspapers who held on to the paper. Time might prove me wrong, but I doubt it.

They have thought about - MS tried to buy Yahoo. Didn't work - not too many other alternatives - maybe they'll try again. Don't forget also that MS owns a chunk of Facebook. MS is starting to go big on the cloud too, so they are getting into position slowly but surely for the future...

Re: Microsoft Buying Adobe?

#136

Post by wealthyox »

joezydeco wrote: post #69
revorad wrote: post #64

Such a deal could be worth $15 billion or more based on Adobe's current market value. Adobe is worth less than half of Facebook? Rolls eyes

Apples and Oranges. Adobe is publicly traded. When (if) Facebook IPOs, they will not be worth $33 billion. http://37signals.com/svn/posts/2585-facebook-is-not-worth-33...

Precisely. Real capital market value, based on demand vs VC paper games.

Re: Microsoft Buying Adobe?

#137

Post by keithwarren »

olalonde wrote: post #73

Microsoft should start thinking about acquiring a web company instead. One day, they will look back and realize that, in retrospective, they shouldn't have held on to the desktop. An analogy could be made with newspapers who held on to the paper. Time might prove me wrong, but I doubt it.

I dont understand this, you seem to think that Microsoft has ignored the web when they are in fact one of the largest web companies on the planet. There is almost no company they could buy who would not overlap in concerns. You might argue that some companies are better at certain things or have larger customer bases but this idea that they should buy a web company and quit holding on to the desktop is just goofy.

All that said, one important web asset MSFT doesnt have a strong play in is web analytics.

Re: Microsoft Buying Adobe?

#138

Post by neovive »

I just don't see the synergies of a full takeover beyond owning the rights to the PDF format. A full takeover would result in Microsoft paying a high premium for a set of desktop design applications (CS suite) that are not part of its DNA. Microsoft excels at building excellent tools for developers, but never seems to do a good job with design tools. Adobe is the opposite.

What's more possible is some sort of partnership that enables stronger PDF support in Office, improved Flash support in Windows Phone and better integration between Office and CS applications.

Microsoft's primary business is selling Windows and Office desktop licenses. Since many Adobe CS users also own Windows and Office licenses, better integration between the two suites would be beneficial for both companies. Introducing a new mobile phone OS based on Flash/Flex/Silverlight or some other combination would not be worth the acquisition cost.

Re: Microsoft Buying Adobe?

#139

Post by Shamiq »

chime wrote: post #109
iamelgringo wrote: post #105

Earlier quoted context omitted.

what do they have that could replace that? Sharepoint, SQLServer, Windows 7, Windows Server, Windows Virtual Server, CRM, Exchange Server, XBox, Xbox live, Bing, Zune, Microsoft Automotive platform, Win 7 phone. Microsoft has one of the most diverse revenue streams of any software company. They're going to be around for a while. Google should actually be more afraid of disruptive technologies. Their revenue is primar…

Also the entire Dynamics series. Web people don't understand the ERP world and the profits that come from annual maintenance plans. What is Dynamics? It's what runs the internal systems for most small/mid-sized businesses that can't afford Oracle/SAP. It's a HUGE market.

I'll also chime in and support Dynamics. It's an amazing market with a ton of actual growth potential.

Re: Microsoft Buying Adobe?

#140

Post by sstrudeau »

ctravis wrote: post #41
jrockway wrote: post #20

Earlier quoted context omitted.

What's "CS"? Unless it's Outlook's calendaring, I doubt it will have any effect on "the enterprise". Remember, most people only use their computers to send email, setup meetings, and browse Facebook.

Correct, but a large chunk of corporations have in house creative departments and many(if not most) use macs. Killing the Mac version of CS would force them to switch back to PC.

Or continue to use the last available version for Mac until a viable replacement is available for their preferred platform.
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