adobe/microsoft/macromedia
NY Times
I guess the short of it is that Adobe and Macromedia have decided to merge, in hopes of fending off Microsoft's forays into multimedia. The threats they're facing are Microsoft's Windows Vista (with a built in document manager) as well as several multimedia production programs designed to directly compete with Adobe. With Windows Vista, Adobe is threatened with losing revenue from creating PDFs, as Vista's document manager will allow users to create PDFs.
A technology consultant with Adaptive Path says that Microsoft is "never an immediate threat when they move into somebody's market. It takes them a few years to do it right and to get a foothold." But the same consultant said that Microsoft's arrival "did often lead to a gradual erosion in a rival's market dominance."
The merger of Adobe and Macromedia is an attempt to boost growth in the two merging companies in order to stave off the erosion of sales that's likely to come and keep both companies viable.
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