24 Dec 2002
posted in daily
Well, I hope this rumour doesn't turn out to be real ..
Microsoft Corp is believed to have trained its acquisition crosshairs on Macromedia Inc, lining up a deal that would throw enterprise Java into a spin, Gavin Clarke writes.
Industry and analyst sources believe Microsoft covets San Francisco, California-based Macromedia's Flash vector graphics design tool and player, which was radically updated this year.
A Microsoft acquisition of Macromedia would inevitably see Flash, and Macromedia's other cross-platform tools, tailored purely for Windows and .NET.
Analysts believe Macromedia is ripe for acquistion. Revenue for the most recent four quarters has been flat while net income is in the red. Macromedia reported an $11.6m net loss, down from $70.7m, for the fiscal quarter to September 30 on revenue that fell 2.2% to $85.4m. For the six months period, Macromedia has narrowed its loss from $182.4m to $13.6m while revenue fell 3.4% to $169m.
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