Shareholders Approve Adobe/Macromedia Merger

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Adobe and Macromedia report they now have the shareholder votes needed to complete a proposed $3.4 billion merger between Macromedia and Adobe. The one remaining hurdle is approval of the transaction by the Department Of Justice, which on July 11th issued a second request for information from the two companies as it evaluates the legality of the merger under antitrust regulations.

Regarding the future of print and web development software from the two companies, observers speculate that Adobe will discontinue development of their primary web development application, GoLive in favor of Macromedia Dreamweaver. Likewise, Macromedia Freehand will most likely be dropped or sold to avoid competition with the more popular Adobe Illustrator drawing program. As a sign of this, Freehand will not be included in the upcoming September release of Macromedia Studio 8. Partners close to Macromedia believe Adobe intends to continue development on Macromedia Cold Fusion and Flex server technologies.