Mike Chambers provides some more context around the proposed merger - am publishing this as it is written from Macromedia perspective and addressed to Macromedia employees - Too often in mergers the view of the acquired company matters a lot -in terms of how they see their technology would grow and what remains for the stakeholders. Excerpts with edits:
The culture of openness and participation that has made Macromedia so successful over the past couple of years -shall not change. Mike thinks that this culture of openness and participation is one of the reasons that Adobe was interested in bringing the companies closer together and that the combined entity will able to compete more effectively, innovate more, and be more responsive than would have been able to do on our own.
The potential of Flash as a cross-platform solution for deploying rich content and applications (I can't stress the cross-platform part of that enough) looks more bright. Together, the combined company will have the resources on our own to make the platform successful on a larger scale. Flash as a platform will be driven by a much, much larger company (over $2 billion a year in revenue), with a lot more resources at its disposal and it makes it much more likely that Flash will play a significant role as the next generation application / content platform (one that is ubiquitous and cross platform). John Dvorak thinks Adobe's acquistion of Macromedia, a competitor that it fought heavily in the past is in line with Adobe's history of fear. The acquisition cost seems to bother a lot - but end of it if both technologies are propoerly leveraged as against screen changes - the possibilities of real growth look good for the new merged entity. We have to wait and see.