Adobe and Macromedia come together in ANZ

Judith Salonga, marketing manager for Adobe in Australia and NZ, says it is unclear at this stage how the merger will effect the local operations of the two companies, although she confirms that staff cuts are likely.

“I think it is likely that there will be a headcount reduction in Australia, because of staff duplications, but we have no specific information at this point in time,” says Salonga.
“We should have more information within the next couple of weeks, following Adobe’s scheduled meeting in the US later this month where acquisition-related expenses will be discussed.”

The controversial US$3.4 billion acquisition finally cleared regulatory hurdles in the USA. It brings together two of the software industry’s most prominent and widely used brands. Adobe is responsible for the PDF file format and the Creative Suite of programs, which includes Acrobat, InDesign and Photoshop, while Macromedia developed Flash technology, one of the internet’s most popular standards for online content generation.

Two software packages are now available, the Adobe Design Bundle and Web Bundle, which combines Adobe’s Creative Suite 2 and video tools with Macromedia’s Flash Professional 8 and Studio 8 software. Local users are promised savings of up to $550, and an additional Video Bundle will follow these packages in early 2006.


While the local logistics are not yet confirmed, Abode worldwide has indicated that it has begun integration of the two companies' operations, networks and customer care organisations. Bruce Chizen is to continue as CEO and Shantanu Narayen remains as president and COO, while Macromedia's Stephen Elop has joined Adobe as president of worldwide field operations.

Chizen claims the Macromedia acquisition is part of Adobe’s overall strategy of spearheading the current explosion in digital content, linked to the growth of technology like mobile phones, wireless devices and broadband.

“Adobe and Macromedia are at the center of this trend, and together we will build on our combined heritage to redefine the way people and businesses communicate,” says Chizen.