Microsoft mulling Adobe acquisition to topple Apple

A team of Microsoft executives led by CEO Steve Ballmer recently met with Adobe Systems chief Shantanu Narayen to explore how the two companies could collaborate to combat Apple's (NASDAQ:AAPL) dominance of the mobile marketplace, with the talks touching on a possible acquisition of Adobe by Microsoft. Citing information from unnamed company employees and consultants to the two firms, The New York Times reports the meeting lasted over an hour and spanned a wide range of subjects, including Apple CEO Steve Jobs' ongoing mission to block Adobe Flash-based web content and applications across devices running the iOS mobile operating system.

A source says Microsoft first courted Adobe several years ago, but the negotiations did not advance because Microsoft feared the Department of Justice would ultimately scuttle an acquisition over antitrust fears. The same source added Microsoft was at that time a far more imposing technological force, overshadowing both Apple and Google. "There's not a question that the atmospherics of Microsoft are much more different that they were a decade ago," said Randal C. Picker, a professor of law at the University of Chicago. "I think you could imagine Microsoft being a more aggressive purchaser in a world where they are no longer an 800-pound gorilla."

Adobe did not deny Narayen met with Microsoft. "Adobe and Microsoft share millions of customers around the world and the C.E.O.'s of the two companies do meet from time to time," a spokesperson said via email. "However, we do not publicly comment on the timing or topics of their private meetings." Microsoft said it did not "comment on rumors/speculation." All Things Digital, citing sources at both companies, calls the acquisition rumors "nonsense."

Last month, Apple agreed to lift a six-month ban on cross-compiler translation tools like Adobe Systems' Flash Professional CS5, enabling developers to design and build iOS apps in Flash then convert their efforts to Apple-approved code. The revisions do not mean consumers are now able to access Flash-based web content via their iPhone and iPod devices, however. Jobs has consistently maintained Flash content support will not come to the iOS platform anytime in the near future, reportedly blaming Flash as the culprit behind most Mac crashes and contending it faces extinction as the world moves to HTML5.

For more on the Microsoft/Adobe talks:
- read this New York Times article

Related articles:
Apple lifts restrictions on Flash development for iPhone
Apple facing antitrust probe over Flash apps ban
Adobe throws in the towel on Flash app tools for iPhone
Adobe slams Apple's plot for 'tyrannical control over developers'
iPhone developer rules rewritten to block Adobe tools