Will Microsoft Team Up With Adobe To Battle Apple?

Well, this is one of the hottest rumors in the info tech business at the moment. However, both Microsoft and Adobe denies that a plan of an alliance between the two is on the table. But analysts and business insiders see the move as a natural next step in the ongoing battle to dominate the mobile application market.

“With Dreamweaver on its hands, Microsoft would pretty much have everything covered.”

mbj3000


And indeed, Microsoft has the money to buy Adobe, whose current market value is about $15 billion, with its guided estimate of a record profit at $27,3 billion for the full fiscal year, ending in June 2011.

But Microsoft have also invested heavily in developing its own Flash rival – Silverlight.

However,after Apple dumped Adobe’s Flash on both iPhone and iPad, the game is about to change.

Adobe chief executive office Shantanu Narayen denies the rumors:

“We value our independence, and we continue to think that we just have tremendous opportunities ahead of us as a company,” he says.

(Here at The Swapper we’re tempted to see this statement as a signal to Microsoft that they have to pay a price per share that’s well above market value if they want Adobe to accept an offer.)

Morningstar analyst Toan Tran is among those who belive there’s something to the rumor:

“It may be a case of “the enemy of my enemy is my friend,” and both Microsoft and Adobe have a common enemy in Apple,” Tran says.

Editor of the magazine PC Pro, who reports on the story, is not too thrilled about the idea:

“What a shame if this not only turns out to be true, but actually come to pass,” Tim Danton writes in a comment in the latest edition of PC Pro, (January 2011).

“To battle against Apple’s perceived dominance on mobile platforms, Adobe and Microsoft need to concentrate on innovation, not consolidation. If the merger happened, all I can see is 18 months of bickering and fall-outs.”

“And what would be the benefit to the consumers? That rather than two player technology, in Silverlight and Flash, we get one? I can only see one winner from this deal, and that’s Apple,” Danton concludes.

Here are some comments from business insiders, bloggers and software reviewers:

“It might be a good idea for Microsoft to buy Adobe since they have complementary products. But it would be a very bad idea to buy the company simply because of a spat with Apple.”

(ironbath)

“It might not just be about defending against Apple. It would also help Microsoft in the web development market, with Dreamweaver on its hands, Microsoft would pretty much have everything covered.”

(mjb3000)

“The whole theory falls down if Apple starts to allow Flash.”

(davidsoap)

Anyway – this has the potential to be the next big story in the tech industry, and you can be sure investors are keeping a close eye with these companies at the moment.

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