Mergers, Acquisitions and Takeovers Case Study

The Adobe-Macromedia Merger

OR

Abstract:
Adobe Systems was a leading developer of various graphics and publishing suites, like Acrobat, Photoshop, and Illustrator etc. On 18 April 2005, it announced the acquisition of Macromedia (a popular name in multimedia authoring and web development) for US$3.4 billion. The future prospects of the newly merged entity became a significant issue as analysts gave divergent opinions on the merger. Some felt that through acquisition the two companies could offer better products and solutions. While few others feared that the combination would lead to greater control of the two companies in the publishing and multimedia business. The case intends to provide a broad profile of the two companies, the competitive scenario in the market, and the various factors that led to the acquisition. The case also discusses the synergies the two companies could draw upon for leverage in the new, emerging markets.

Pedagogical Objectives:

• To discuss the broad profiles of the two companies before merger
• To discuss scenario in the market, and the various factors that led to the acquisition
• To discuss the synergies the two companies could draw upon for leverage in the new, emerging markets.

Keywords : Mergers,Acquisitions,Alliances Case Study;Adobe; Macromedia; Publishing; Multimedia; Graphics; Photoshop; Illustrator; Acrobat; Postscript; Animation; DreamWeaver; Arbortext; Microsoft; Pagemaker; Document

Contents : 
Adobe – A Leading Name In Desktop Publishing
The Arrival Of Portable Document Format (Pdf)
Products And Revenues
The Competitive Troubles
The Acquisiton Of Macromedia
Cashing In On Multimedia Applications
The Merger: Rationale And Synergies
Adobe’s Broad Portfolio Of Products
Macromedia’s Product Segments