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Adobe is a 600% larger company by market cap standards.
Adobe has 1.47B in cash to Macromedia's 340.88M.
Adobe is not buying Macromedia to dismantle products, they are buying it for the future of rich media, Flash. Flash as a medium is going to get huge and now it stands to be better funded and nurtured from the combined resources of a much larger company. We will see great products emerge that utilize the Flash Player as a medium and provide a wider range of creative uses. Rich media just got allot richer.
In the public markets, Adobe and Macromedia are comparables. Each companies stock price is gauged on the other in relative terms. Analysts pick apart every press release and earnings statement of these two companies looking for something discern who is leading or if the market has changes.
5 Year comparision chart MACR and ADBE
This merger ends the public and private competition that these two companies have waged against one another. The two have sued each other with regularity over patent infringement and technology related issues. All of these distractions will disappear and allow the merged company to focus on rich media and communication.
The world wants rich media and putting 7 times more resources behind Flash seems like a very good start to me.
