If ADBE is be taken by GOOG, anyone wants to guess how much premium would it be? For now, ADBE's earning is a bit depressed due to merge of Macromedia. But moving into next year ADBE is looking great.... GOOG needs ADBE to compete with MSFT.
Not gonna happen, adbe's poison pill would prevent it. Besides the purchase price would be no mere 1.6 billion like you-tube, probably be closer to the order of 5 billion. Furthermore it wouldn't make sense as a merger, unless you see macdonalds hot to buy comcast, or Alcoa Aluminum buying TWA as a 'good fit'.
Adobe sells products google sells advertisements. Completely unrelated businesses.
GOOG provides quality software products so as to sell ads, where they make their money. But, without the software products, no one would want to advertize with Goog so they would have nothing to sell.
ADBE make quality products that would serve as maintenance stream revenue. But, the reason to buy it (NOT SAYING THAT THEY SHOULD, COULD, ETC) is for the RIA platform being creating where the future value of ADBE is.
Yes they did. But neither Flash or Acrobat by itself is the "killer app." But, if you read about the "new" (again-:)move into desktop creating the platform for the new internet client-server is where ADBE has the potential to really succeed. BUT, also to find and fight world class competitors.
follow the thread. My reply was to crazy boy mx1ny NOT TO YOU. and yes I have spent more time on Charleston Road in Mountain View and Park ave in San Jose than you can imagine.
Re-read what I wrote. I was saying that GOOG could NOT build the tools that ADBE has in a short time, if ever. Trust me I know more about Adobe than most of you. Unless perhaps you spent over five years on Park Ave in SJ.
Slackdick, that is a good one.
Really interesting question. A rephrase would be what price would make it an offer impossible for a shareholder and ADBE management to refuse?
Since the current price target is about $47 with some analysts calling for $50 without any premium for a buyout, I would think that $55 would be the low end of fair but easy to refuse by management. $60 would be much harder, etc.
Dream on. I highly doubt GOOG is ever going to buy Adobe. They can build it faster on their own. And a premium of $55-60. Not a chance. Also, there hasn't been one whisper of this happening from anyone. Total false speculation from those holding Adobe stock.
I wish I could reply accurately. But look at the various key figures and ratios: ever seen these days a company with that sort of levered free cash flow, quick ratio and debt/equity ratio ? That's gold for me !
For me the price target is abt 52-55$ ?