Adobe buys Macromedia

“Adobe has announced an agreement to acquire Macromedia in an all-stock transaction valued at $3.4 billion. Graphics software giant, Adobe, will acquire the web and application development software company Macromedia at the close of fourth quarter 2005.”

…according to DP Review.

This would seem to make a lot of sense – they have quite similar strategies in a lot of ways. Both make money from distributing free readers for formats that they’re the main supplier of development tools for – PDF and Flash. Both make stuff quite tightly integrated with web design, and it’s all creative stuff.

Update: Daring Fireball has an excellent translation of the FAQ for the merger. I have to admint, it hadn’t occured to me that Macromedia were the only competition in a couple of very important areas for Adobe. There’s not much competition at all now in the vector drawing space, though I’ve always rather liked CorelDRAW myself. It’s quite a while since I’ve used it at all, though – it’s just a bit too expensive to justify now. I had version 6 when I picked it up quite statlingly cheaply – not entirely sure it was legit, but it worked 😉 and I was only playing with it as a student anyway. Corel never really did catch on with many professionals, though.