Comments on: Why Apple Should Acquire Adobe http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/ Jeff Nolan's take on investment, innovation, entrepreneurship and the technology industry Fri, 12 Mar 2010 18:53:37 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: Apple’s Checkbook | Venture Chronicles http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/comment-page-1/#comment-299161 Apple’s Checkbook | Venture Chronicles Wed, 22 Oct 2008 13:33:09 +0000 http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/#comment-299161 [...] I wrote a post 20 months ago saying Apple should certainly acquire Adobe and why, in the time that has passed Apple has doubled their cash position and the market cap for ADBE has been cut by 25%. I wrote back then that Apple’s cash position would become a drag on their balance sheet, of course today with the financial markets in the condition they are in this is certainly not the case but at some point you are going to get serious shareholders asking what they are going to do with that cash. [...] [...] I wrote a post 20 months ago saying Apple should certainly acquire Adobe and why, in the time that has passed Apple has doubled their cash position and the market cap for ADBE has been cut by 25%. I wrote back then that Apple’s cash position would become a drag on their balance sheet, of course today with the financial markets in the condition they are in this is certainly not the case but at some point you are going to get serious shareholders asking what they are going to do with that cash. [...]

]]> By: Niel Robertson http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/comment-page-1/#comment-213247 Niel Robertson Sat, 12 Jan 2008 23:53:34 +0000 http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/#comment-213247 I think the key is actually Apollo/Aire. This is a vastly underdiscussed game changer. I have written many times about the war for developers and Apple fails miserably. They could basically buy 1000's of flash developers immediately and start to really compete on the desktop app side with Microsoft. That said, Apple has NEVER understood this so why think they will now. I think the key is actually Apollo/Aire. This is a vastly underdiscussed game changer. I have written many times about the war for developers and Apple fails miserably. They could basically buy 1000’s of flash developers immediately and start to really compete on the desktop app side with Microsoft.

That said, Apple has NEVER understood this so why think they will now.

]]> By: Google Gears : Venture Chronicles http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/comment-page-1/#comment-119918 Google Gears : Venture Chronicles Thu, 31 May 2007 01:09:28 +0000 http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/#comment-119918 [...] Lastly, there is an open question for Google over Apollo/Silverlight. While Google is clearly developing an offline capability, thereby flattening one of the objections that Google faces when pitching their office applications, but what is there answer on the question about rich non-browser based applications. Perhaps Google is a better acquirer of Adobe than Apple? [...] [...] Lastly, there is an open question for Google over Apollo/Silverlight. While Google is clearly developing an offline capability, thereby flattening one of the objections that Google faces when pitching their office applications, but what is there answer on the question about rich non-browser based applications. Perhaps Google is a better acquirer of Adobe than Apple? [...]

]]> By: Jeff http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/comment-page-1/#comment-96153 Jeff Mon, 26 Mar 2007 14:18:58 +0000 http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/#comment-96153 that's a really good point Will. In thinking about it, I would be surprised if GOOG pulled a big infrastructure or tools acquisition, even though they certainly could afford the $30-35b it would take to acquire Adobe. To date their largest acquisition has been Youtube, I believe... content and traffic. that’s a really good point Will. In thinking about it, I would be surprised if GOOG pulled a big infrastructure or tools acquisition, even though they certainly could afford the $30-35b it would take to acquire Adobe.

To date their largest acquisition has been Youtube, I believe… content and traffic.

]]> By: Will http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/comment-page-1/#comment-95155 Will Sat, 24 Mar 2007 05:26:12 +0000 http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/#comment-95155 Agree on APPL. The company that should really be buying ADBE is GOOG. . . - huge cash balance sheet dragging down ROE - single app/service company trying to build a platform - dire need of diversification - highly accretive - brings some rigor to their prod dev process - good kick in the nuts of MSFT (pardon my french) - move beyond the browser which is owned my MSFT - dis-intermediate the user from the desktop (which is also owned my MSFT) -Huge synergies with Google "Office" -Additional distribution points for adsense -Bringing advertising to the desktop! -PDF = information . . . imagin owning the "WSDL" for a huge portion of the data in the world -cant do the semantic web or oganize the world's information without controling PDF Agree on APPL. The company that should really be buying ADBE is GOOG. . .

  • huge cash balance sheet dragging down ROE
  • single app/service company trying to build a platform
  • dire need of diversification
  • highly accretive
  • brings some rigor to their prod dev process
  • good kick in the nuts of MSFT (pardon my french)
  • move beyond the browser which is owned my MSFT
  • dis-intermediate the user from the desktop (which is also owned my MSFT)
    -Huge synergies with Google “Office”
    -Additional distribution points for adsense
    -Bringing advertising to the desktop!
    -PDF = information . . . imagin owning the “WSDL” for a huge portion of the data in the world
    -cant do the semantic web or oganize the world’s information without controling PDF
]]> By: Jeff http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/comment-page-1/#comment-94531 Jeff Thu, 22 Mar 2007 20:17:26 +0000 http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/#comment-94531 To answer your question even more directly, it’s a drag on the balance sheet because it pulls down their ROE. It’s highly unlikely that they will generate a greater return by investing it in the market than in operations and if they did, well that would be an entirely different issue to face. To answer your question even more directly, it’s a drag on the balance sheet because it pulls down their ROE. It’s highly unlikely that they will generate a greater return by investing it in the market than in operations and if they did, well that would be an entirely different issue to face.

]]> By: Jeff http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/comment-page-1/#comment-94529 Jeff Thu, 22 Mar 2007 20:13:55 +0000 http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/#comment-94529 Just ask any of the institutional investors or analysts that cover the stock. Having a great big pile of cash sitting in money market accounts isn’t doing the shareholders any favors, they expect you to be investing that cash in activities that produce a greater return than simply sitting on it. This is exactly what drove Microsoft to issue their first ever dividend... To abstract the issue to another level, that $12b in cash belongs to the shareholders of the company, not the CFO and Steve Jobs. The legitimate question to ask is what are they doing with it. Just ask any of the institutional investors or analysts that cover the stock. Having a great big pile of cash sitting in money market accounts isn’t doing the shareholders any favors, they expect you to be investing that cash in activities that produce a greater return than simply sitting on it. This is exactly what drove Microsoft to issue their first ever dividend…

To abstract the issue to another level, that $12b in cash belongs to the shareholders of the company, not the CFO and Steve Jobs. The legitimate question to ask is what are they doing with it.

]]> By: RobF http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/comment-page-1/#comment-94502 RobF Thu, 22 Mar 2007 18:29:35 +0000 http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/#comment-94502 Since when is no debt and $12 billion a drag on Apple's balance sheet? Since when is no debt and $12 billion a drag on Apple’s balance sheet?

]]> By: James Katt http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/comment-page-1/#comment-93915 James Katt Wed, 21 Mar 2007 07:32:50 +0000 http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/#comment-93915 I love it! I would love for Apple to purchase Adobe. This would make sure Apple has control over the creative computing world. Apple would then have products covering graphic design, to photography, to web-based design, to print technology, to film and music. Apple would be a formidable software company. Apple would insure that it gets the best in creative software before the PC World would have it. Apple use to own part of Adobe. It was a big mistake to sell it's shares of Adobe off in the past. Now that Apple is big enough, it can purchase all of Adobe. Apple learned with Steve Jobs that it has to create its own software to insure its destiny. It cannot rely on third parties to support it all the time - particularly with the larger Windows market causing Apple to get second tier in software development. Acquiring Adobe would insure Apple gets first tier software in it's largest area of dominance - the creative field. I think it would be a fantastic move for Apple. Taking Adobe would certainly lock Microsoft out of the creative market. It would also give Apple enormous influence in determining the future of the web and internet. I love it!

I would love for Apple to purchase Adobe.

This would make sure Apple has control over the creative computing world. Apple would then have products covering graphic design, to photography, to web-based design, to print technology, to film and music. Apple would be a formidable software company. Apple would insure that it gets the best in creative software before the PC World would have it.

Apple use to own part of Adobe. It was a big mistake to sell it’s shares of Adobe off in the past.

Now that Apple is big enough, it can purchase all of Adobe.

Apple learned with Steve Jobs that it has to create its own software to insure its destiny. It cannot rely on third parties to support it all the time – particularly with the larger Windows market causing Apple to get second tier in software development.

Acquiring Adobe would insure Apple gets first tier software in it’s largest area of dominance – the creative field.

I think it would be a fantastic move for Apple.

Taking Adobe would certainly lock Microsoft out of the creative market.

It would also give Apple enormous influence in determining the future of the web and internet.

]]> By: uncdanwrong http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/comment-page-1/#comment-93745 uncdanwrong Tue, 20 Mar 2007 17:57:30 +0000 http://jeffnolan.com/wp/2007/03/19/why-apple-should-acquire-adobe/#comment-93745 There's no reson for Apple to acquire more than 20% of Adobe. That and a seat on the board would be plenty to assure that Adobe won't take the Mac for granted. There’s no reson for Apple to acquire more than 20% of Adobe. That and a seat on the board would be plenty to assure that Adobe won’t take the Mac for granted.

]]>