Apr 18 2005
Adobe to buy Macromedia!
A blockbuster sized story just broke–Macromedia will be bought out by graphics giant Adobe. Between the two companies, nearly 100% of people in the design industry use at least one of their products. The $3.4 billion deal has been approved by execs from both companies. Here are the specs:
Under the terms of the agreement, which has been approved by both boards of directors, Macromedia stockholders will receive, at a fixed exchange ratio, 0.69 shares of Adobe common stock for every share of Macromedia common stock in a tax-free exchange. Based on Adobe’s and Macromedia’s closing prices on Friday, April 15, 2005, this represents a price of $41.86 per share of Macromedia common stock. Upon the close of the transaction, Macromedia stockholders will own approximately 18 percent of the combined company on a pro forma basis.
Shares of Macromedia [MACR] closed at $33.45 Friday, making Adobe’s bid a large premium.
The real story here is the massive market share Adobe will control in the creative industry. Besides video and out of date print publishing, they have it wrapped up. What are your thoughts? Sound off! (Personally I thought I read the headline wrong…)