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MacBytes
Apr 9, 2008, 10:28 AM
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Category: Opinion/Interviews
Link: Apple, Adobe Belong Together (http://www.macbytes.com/link.php?sid=20080409112842)
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Posted on MacBytes.com (http://www.macbytes.com)
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Silencio
Apr 9, 2008, 11:25 AM
Wrong, wrong, wrong. Apple doesn't need to buy Adobe to get Flash on the iPhone: I get the impression Adobe would gladly do it if Apple would get behind it, but it seems right now like Apple would rather not compromise the iPhone experience with a half-baked mobile Flash.

Apple doesn't need to buy Adobe for any other reason, either. Just because Microsoft is stumbling forth with an idiotic mega-acquisition doesn't mean Apple should follow suit.

[Edit: typo]

nick9191
Apr 9, 2008, 11:32 AM
Adobe are writing a version of flash for the iPhone.

IJ Reilly
Apr 9, 2008, 11:57 AM
There has always been a certain logic to Apple and Adobe joining forces but I think the case has lost some of its attractiveness with time. For one, Apple can't simply "buy" Adobe -- they haven't got enough cash for a straight acquisition, even at the current market valuation, and the actual price would be much higher. So it becomes a merger, in effect, which complicates matters considerably. Personally, I don't see any benefits to a merger which can't be accomplished at far less cost with cooperative agreements between the companies. We haven't seen many of them either, which tells me that these two companies really aren't on parallel tracks. Apple should invest its cash hoard in something, but not in this.

numediaman
Apr 9, 2008, 03:50 PM
I don't know, Apple buying Adobe and then firing anyone at Adobe related to customer relations and services would be nice.

I used to rate Adobe very high in this area, and now consider them absolutely the worst.

On the other hand, my wife recently called Apple customer service for the first time and was shocked how helpful they were -- despite the fact she was on a PC and was asking about a piece of software not supported by Apple. The only reason she called Apple was because of the router, and they still helped her as much as they could.

ckurowic
Apr 9, 2008, 06:03 PM
There has always been a certain logic to Apple and Adobe joining forces but I think the case has lost some of its attractiveness with time. For one, Apple can't simply "buy" Adobe -- they haven't got enough cash for a straight acquisition, even at the current market valuation, and the actual price would be much higher. So it becomes a merger, in effect, which complicates matters considerably. Personally, I don't see any benefits to a merger which can't be accomplished at far less cost with cooperative agreements between the companies. We haven't seen many of them either, which tells me that these two companies really aren't on parallel tracks. Apple should invest its cash hoard in something, but not in this.

I'm not sure about not having enough cash for an acquisition, do you have figures to back that up? I'm not trying to be an ass or anything, I'm just honestly curious.

Genghis Khan
Apr 9, 2008, 06:42 PM
hmmm...

Recession...luxury goods maker...

apple should SIT on its money for now...

IJ Reilly
Apr 9, 2008, 07:23 PM
I'm not sure about not having enough cash for an acquisition, do you have figures to back that up? I'm not trying to be an ass or anything, I'm just honestly curious.

I haven't checked the market cap myself, but the article states $20 billion for Adobe, which I assume is correct, and is more than Apple has cash-on-hand. Note also that takeovers always entail a significant premium over current market value, so you could easily add another $10 billion to that. Also, keep in mind that that Adobe is a healthy company with an almost captive market and in no particular need of a suitor. Their first question about a takeover deal would have to be "what's in it for us?"

Pikemann Urge
Apr 10, 2008, 01:15 AM
On a slight tangent, bravo to Apple for not supporting Flash on the iPhone. Hopefully web developers will realize the pros of AJAX over Flash and move away from the latter, no matter what the platform.

lost eden
Apr 10, 2008, 05:54 AM
On a slight tangent, bravo to Apple for not supporting Flash on the iPhone. Hopefully web developers will realize the pros of AJAX over Flash and move away from the latter, no matter what the platform.
Um, no. If you look at the daily traffic for websites like YouTube, DailyMotion, etc. you'll see that the number of people that own iPhones is so miniscule in comparison as to be ignored.

netcastle
Apr 10, 2008, 06:59 AM
I haven't checked the market cap myself, but the article states $20 billion for Adobe, which I assume is correct, and is more than Apple has cash-on-hand. Note also that takeovers always entail a significant premium over current market value, so you could easily add another $10 billion to that. Also, keep in mind that that Adobe is a healthy company with an almost captive market and in no particular need of a suitor. Their first question about a takeover deal would have to be "what's in it for us?"

Geez, a 50% over-valuation for aquisition. That's optimistic!

Apple isn't going to buy Adobe and they won't merge. Neither comapny stands to gain from it, if you think about it.

clevin
Apr 10, 2008, 09:13 AM
some people likes monopoly alot!

No flash on iPhone, as adobe developers said, is 100% apple's fault.

IJ Reilly
Apr 10, 2008, 10:40 AM
Geez, a 50% over-valuation for aquisition. That's optimistic!

Apple isn't going to buy Adobe and they won't merge. Neither comapny stands to gain from it, if you think about it.

A 50% premium isn't unrealistic. Microsoft offered about that much over market cap for Yahoo, and Yahoo rejected it as too low. And that's for a company which is struggling and could benefit from the right merger. But I agree, a merger between Apple and Adobe makes no real sense for either company.

Analog Kid
Apr 10, 2008, 09:11 PM
This is one of those ideas that seems to make sense in the beginning, but the aftertaste gets ya... If Apple bought out what is probably the largest 3rd party developer for Mac, it completely change the way Mac looks to the world.

Right now, the Mac appears to be a general purpose platform for which anyone can develop. Bring the entire profession design workflow into Apple and all of a sudden Mac looks like a dedicated machine with optional modules you can purchase to extend its utility.

IJ Reilly
Apr 11, 2008, 10:29 AM
I don't remember the exact figures, but I believe about half of Adobe's revenue comes from Windows software. Maybe more than half. If Apple and Adobe merge, that part of their business is automatically brought into question.

The article suggested that a merger could provide Adobe products better placement in Apple stores. That's potentially a good idea, but of course no merger is required to make that happen. Possibly Apple could adopt Postscript instead of PDF for Quartz -- but again, no merger is required for that, just a technology-sharing agreement or a license.

saltyzoo
Apr 11, 2008, 10:37 AM
On a slight tangent, bravo to Apple for not supporting Flash on the iPhone. Hopefully web developers will realize the pros of AJAX over Flash and move away from the latter, no matter what the platform.

LOL God I wish it were to be so, but alas, I fear we must succumb to the overwhelming waves of "flash"y crap. Resistance is futile. We WILL be assimilated.