Microsoft merger speculation boosts Adobe
Speculation that Microsoft plans to work more closely with Adobe or even buy the company has caused the share price of Adobe Systems to rise by 12pc.
Steve Ballmer, Microsoft’s chief executive, and Shantanu Narayen, Adobe’s CEO, recently met to discuss closer ties between the two companies, according to the New York Times.
The Times, quoting two sources familiar with the matter, said the meeting took place at Adobe’s San Francisco offices.
Analysts have suggested that closer links between the two companies could help Microsoft challenge Apple and Google in the smartphone market.
Bloomberg also quoted an analyst, Katherine Egbert, who said that the two companies would benefit from closer links between Microsoft’s .Net platform and Adobe’s creative tools.
The New York Times said that Ballmer and Narayen met for an hour and that the main topic of conversation was how Microsoft and Adobe could challenge Apple in the smartphone market.
Apple’s iPhones do not support Adobe's Flash software, which provides video and other interactive functions for many websites.
The New York Times also said that Microsoft had considered a partnership with Adobe a few years ago but feared that it would fall foul of monopoly legislation.
Since then, however, Google and Apple have grown in stature in the technology market so a partnership between Microsoft and Adobe might win approval.
Neither Adobe nor Microsoft denied that the meeting had taken place but neither company would comment on the discussions.