It is October 8, 2010, and there are rampant rumors on Wall Street that Microsoft is contemplating the purchase of Adobe Systems. The stock price of Adobe Systems has skyrocketed on the news, and financial analysts are queuing up on CNBC to offer their opinions on the pros and cons of such an acquisition.
Meanwhile, Mary Jo Foley on sister-site ZDNet has expressed skepticism that the deal is in the works (”Microsoft Buying Adobe? Call Me Highly Skeptical“). Mary Jo makes this observation:
Microsoft officials have said repeatedly the company is not looking to buy bigger companies; any new acquisitions are likely to be small and supplemental to the company’s existing businesses.
I tend to fall more toward Mary Jo’s thinking. I don’t believe it makes good business sense for Microsoft to acquire Adobe. It does make good sense to cut a business deal, especially with regard to the upcoming Windows Phone 7-based devices, but not an outright acquisition.
What do you think Microsoft should be doing businesswise? Should Microsoft buy Adobe and/or some other company? What markets should Microsoft be looking to buy in to? Keep in mind, Microsoft has billions of dollars in cash that needs to be invested somehow; the only real question is where those dollars will go.
Should Microsoft buy Adobe or look for a better deal?
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