NEW YORK – The DOJ has requested additional information about the proposed merger between Macromedia, maker of web-based animation software Flash and the popular Dreamweaver HTML editor, and Adobe Systems, maker of the widely-used Photoshop image manipulation tool.”Adobe and Macromedia are in the process of gathering information to respond promptly to the second request and continue to work closely with the Justice Department as it conducts its review,” the companies said in a joint statement.
In April, Adobe announced that it would buy Macromedia in a stock deal estimated to be worth 3.4 billion. The deal is expected to help Adobe fend off growing competition from Microsoft and open-source software projects.
But Adobe already has its own HTML editor, Adobe GoLive, which it has been offering for a number of years. When a large merger involves two companies that serve the same market, the government often takes a close look at how the deal might impact consumers.
“It’s not unusual to see a second request [for information] in cases were the parties serve the same market, especially in software,” said attorney Connie Robinson, an attorney who works in the antitrust department at Kilpatrick Stockton. “Unlike a widget, where you can see it and touch it, software is harder to get your hands around and understand.”
Despite the increase in government scrutiny, Adobe still expects that its proposed deal will be completed in the fall.
