Hello readers, sorry for the long hiatus. I hit pause to enjoy life a bit. But now I’m digesting a story that is causing me to gag: that Microsoft and Adobe are going to battle Apple together in 2010 by resurrecting the 1990s. . The idea is that Microsoft was discovered to be holding talks with Adobe, and therefore the worlds biggest software company was imminently prepared (obviously!) to swallow the wildly overvalued conjoined twins of Adobe and Macromedia.
Someone else who thinks Microbe would be an ultimate fail. ANd he is right on track. For starters:
For starters, I’d like to point out that while oxymoronic “conventional wisdom” holds that the solution to any corporate problem is to merge with another company, the opposite is often the case. Very rarely do you have a merger of two large companies that does anything but fail or marginally survive.
The best example of a good tech merger was Apple’s acquisition of NeXT, but that was more of a reverse takeover of a well positioned but ineptly run large company by a struggling but talented management pool of a relatively small company.
Microsoft may well play the role of a well positioned but ineptly run large company, but Adobe doesn’t offer any sort of talented management, nor even the futuristic technology along the lines that NeXT provided to Apple back in 1997. A merger of the two would be more like American Airlines buying Amtrak.
Microsoft has rarely leveraged a takeover into anything much. Adobe has been a little better but neither is known for getting cutting edge software out the door.
And both are mired in the desktop paradigm, showing little success in the mobile. The CEO of Verizon just said the Microsoft was not a big part of their mobile strategy. How would a merger synergize their mobile efforts?
Adobe got Flash four years ago by buying Macromedia, in order to get a better web presence. It may have done that but that web presence has not translated well to the mobile marketplace. How would a merger synergize their mobile efforts?