Systems saw their share price as rumors circulated that Microsoft was about to work on a close project with them or even purchase the company. The rumors came about after the news that the two had a meeting. Steve Ballmer, Microsoft’s chief executive, and Shantanu Narayen, Adobe’s CEO, are said to have met at Adobe’s San Francisco headquarters.
A relationship between the two could prove highly beneficial to Microsoft. Analysts have reasoned that the two companies working closely together could help Microsoft take on both Apple and Google more successfully. The main topic of discussion is said to have concerned how the two could take on the Apple iPhone. Currently Apple does not allow or support the Adobe Flash software on either its iPhone or iPad. The Adobe Flash Player is highly popular throughout the Web.
Neither company will comment on the meeting. However, at a conference in Madrid, Spain on Friday, Ballmer said: “If you are going to do something, you say nothing. So I’ll be entirely consistent with standard CEO operating procedure.” This comment has only strengthened that indeed something big is in the works between the two companies.
Should Microsoft purchase Adobe it is expected the value offer would be close to $15 billion. The company had an annual revenue of close to $3 billion last year.
Some analysts think the acquisition rumors are indeed just rumors. “I don’t think there is an acquisition by any means,” said Trip Chowdry of Global Equities Research, he called it “wishful thinking” on the part of investors. He believes the two met to discuss their Flash and Silverlight products and how the two could work together to better challenge Apple.