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I am an exchange student who study finance at Regents College for unfortunately only one semester.

Tuesday 12 October 2010

Rumour, Microsoft want to acquire Adobe

The rumour

There is a spreading rumour about Microsoft willing to buy Adobe Systems. The rumour started a couple of days ago because the Microsoft’s CEO, Steve Ballmer meet with Adobe’s CEO, Shantanu Narayen.





 Shantanu Narayen and Steve Ballmer
Source : http://www.logiciel.net/microsoft-compte-racheter-adobe-pour-contrer-apple-9711.htm


These two major firms want to collaborate to compete against Apple in the Communication devises. For the moment, Microsoft failed to have a product or software capable of competing on the smartphone market.

Adobe has an excellent product which is Adobe’s Flash 10. This product is used to see videos and websites, allowing internet access on it. Apple has the major part of smartphone market and Adobe wants to collaborate with Apple to develop the Flash technology for Iphone and Ipad. The biggest problem is that the Apple’s CEO, Steve Jobs does not want this Adobe product on any of Apple’s devices. He criticized Adobe’s Flash 10 saying that: “Adobe’s Flash is the leading cause of system crashes on Apple systems and web pages.”

My Opinion

Microsoft will soon launch an exploitation software name Windows Phone 7 for smartphones and if Adobe contributes to the product with the Adobe’s Flash 10, the product could be highly competitive.

The financial market has reacted very favourably seeing Adobe stock increase by 11.5% in one day. Investors want that acquisition to become a reality. It is a fact that Microsoft has enough money to buy Adobe.

I think it is not good idea that Microsoft acquires Adobe because Adobe has other products which are on Mac Computer, like Adobe Photoshop and if Microsoft buys Adobe, they would want to stop developing products for the concurrence; Apple and that would be unfair to the customers. It’s actually the same problem with Apple because they use their leader and power position to make restrictions.

To me, the best solution would be that Microsoft and Adobe work together to develop a high quality product, which would integrate software made out of Microsoft’s know-how and the product qualities of Adobe for the flash.  The product would then be highly competitive and Apple would be forced to let Adobe develop falsh on Apple devices. Would it happen, the winner would be the customer !




Windows Phone 7 with flash
Source : http://www.techtree.com/

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