Florian Seroussi's Blog

Google should buy Adobe

Wednesday, August 18th, 2010

Adobe is the number one gaming platform for developers. Even if Apple is trying to destroy the company’s future, nothing is really changing.

HTML5 is not the new Flash although for video playback it might be a better solution (or not). But developers have constantly praised Flash for gaming. I’m not saying Flash is perfect, nothing is perfect and there is always place for improvement.

But the acceleration of  hardware miniaturization, the abyssal growth of smart mobile devices, the potential explosion of tablets and the furious competition between Apple and Google (soon Microsoft will join) makes Adobe a key player in this war.

Google –unlike Apple- has decided to work with Adobe on integrating Flash on their proprietary operating system Android and certainly Chrome OS. Their strategy lays before us on multiple announcements issued by Mountain View’s giant in the last week.

Flash Player 10.1 on Google Nexus Ones

Adobe Air coming for Android

Adobe for Google TV

Native PDF integration on Chrome Browser 6

At least 5 different Google’s units – YouTube (largest Flash network), Android, Chrome browser, Chrome OS and Google TV have made deals with Adobe. Hard to believe it’s all happening without top level corporate talks between both companies.

Adobe’s market capitalization has dropped 30% since Steve Jobs has openly called Flash an insecure, CPU killer, crash-inducing add-on. A $5bn insult  – thanks Steve.

Revenues are also on the downside from $3.5bn in 2008 to $2.8bn in 2009.

Google’s market cap is 11 times Adobe’s and would give the search engine company a nice entry in the mobile gaming playground.

Adobe can’t expect a lot as all deals are based on offer and demand. Apple will obviously not make any bid; Microsoft is too far behind in their mobile road map and will bet everything on Xbox/WP7 synergies.

So who else can afford a $15bn GI Joe?

Tags: adobe, android, chrome, chrome os, flash, ipad, iPhone, steve jobs, youtube
Posted in Apple, Economy, Microsoft, Technology, Video, android, google | No Comments »