5. Do you believe the transaction can be justified based on your understanding of the strengths and weaknesses of the two firms and perceived opportunities and threats to them in the marketplace? Be specific. Adobe's Acquisition of Omniture: Field of Dreams Marketing? On September 14, 2009, Adobe announced with multiple product offerings to achieve its acquisition of Omniture for $1.8 billion better product compatibility. in cash or $21.50 per share. Adobe CEO Omniture makes software designed to Shantanu Narayen announced that the firm track the performance of websites and online was pushing into new business at a time advertising campaigns. Specifically, its Web when customers were scaling back on pur- analytic software allows its customers to meachases of the company's design software. sure the effectiveness of Adobe's content creOmniture would give Adobe a steady source ation software. Advertising agencies and of revenue, which could mean investors would media companies use Omniture's software focus less on Adobe's ability to migrate its cus- to analyze how consumers use websites. It tomers to product upgrades such as Adobe competes with Coogle and other smaller parCreative Suite. ticipants. Omniture charges customers fees Adobe's business strategy was to develop based on monthly website traffic, so sales a new line of software that was compatible are somewhat less sensitive than Adobe's. with Microsoft applications. As the world's When the economy slows, Adobe has to rely largest developer of design software, Adobe on squeezing more revenue from existing licenses such software as Flash, Acrobat, customers. Omniture benefits from the takePhotoshop, and Creative Suite to website de- over by gaining access to Adobe customers velopers. Revenues grow as a result of in- in different geographic areas and more capital creased market penetration and inducing for future product development. Withannual current customers to upgrade to newer ver- revenues of more than $3 billion, Adobe is sions of the design software. almost ten times the size of Omniture. In recent years, a business model has Immediately following the announcement, emerged in which customers can "rent" soft- Adobe's stock fell 5.6% to $33.62, after having ware applications for a specific time period gained about 67% since the beginning of 2009 . by directly accessing the vendors' servers In contrast, Omniture shares jumped 25% to online or downloading the software to the \$21.63, slightly above the offer price of customer's site. Moreover, software users $21.50 per share. While Omniture's share have shown a tendency to buy from vendors price move reflected the significant premium Mergers Acquisitions... 5. Do you believe the transaction can be justified based on your understanding of the strengths and weaknesses of the two firms and perceived opportunities and threats to them in the marketplace? Be specific. Adobe's Acquisition of Omniture: Field of Dreams Marketing? On September 14, 2009, Adobe announced with multiple product offerings to achieve its acquisition of Omniture for $1.8 billion better product compatibility. in cash or $21.50 per share. Adobe CEO Omniture makes software designed to Shantanu Narayen announced that the firm track the performance of websites and online was pushing into new business at a time advertising campaigns. Specifically, its Web when customers were scaling back on pur- analytic software allows its customers to meachases of the company's design software. sure the effectiveness of Adobe's content creOmniture would give Adobe a steady source ation software. Advertising agencies and of revenue, which could mean investors would media companies use Omniture's software focus less on Adobe's ability to migrate its cus- to analyze how consumers use websites. It tomers to product upgrades such as Adobe competes with Coogle and other smaller parCreative Suite. ticipants. Omniture charges customers fees Adobe's business strategy was to develop based on monthly website traffic, so sales a new line of software that was compatible are somewhat less sensitive than Adobe's. with Microsoft applications. As the world's When the economy slows, Adobe has to rely largest developer of design software, Adobe on squeezing more revenue from existing licenses such software as Flash, Acrobat, customers. Omniture benefits from the takePhotoshop, and Creative Suite to website de- over by gaining access to Adobe customers velopers. Revenues grow as a result of in- in different geographic areas and more capital creased market penetration and inducing for future product development. Withannual current customers to upgrade to newer ver- revenues of more than $3 billion, Adobe is sions of the design software. almost ten times the size of Omniture. In recent years, a business model has Immediately following the announcement, emerged in which customers can "rent" soft- Adobe's stock fell 5.6% to $33.62, after having ware applications for a specific time period gained about 67% since the beginning of 2009 . by directly accessing the vendors' servers In contrast, Omniture shares jumped 25% to online or downloading the software to the \$21.63, slightly above the offer price of customer's site. Moreover, software users $21.50 per share. While Omniture's share have shown a tendency to buy from vendors price move reflected the significant premium Mergers Acquisitions