Another Reason for Apple to Buy Adobe

Recs

5

Props to you, Fools.

Not even a week after you voted Adobe (Nasdaq: ADBE) as the company best suited to join Apple (Nasdaq: AAPL) in market matrimony, the PhotoShop prince offered still more proof of its usefulness to the iEmpire.

Adobe yesterday rolled out a new media player that, boldly, hopes to challenge everyone offering similar technology, Apple included. I'm not at all sure the company will succeed, but I love the idea.

Why? Adobe media player is, in many ways, a self-contained application. No browser is needed to download content from the Web. Think of it as a TV on your computer with the remote being the control menus in the software.

Of course, if the history of software proves anything, it's that "better" doesn't always mean "winner." Here, Adobe has to face down entrenched competitors such as Microsoft (Nasdaq: MSFT) and its Windows Media Player and RealNetworks (Nasdaq: RNWK) and its Real Player. And, of course, there's iTunes.

Open-source media players also exist. VLC Media Player and Miro, for example. Neither has the footprint of Windows Media Player or iTunes, but their very existence is a reminder that competition is everywhere.

If Adobe has an advantage here, it's with Flash, a popular technology that Adobe acquired from Macromedia in 2005 and that helps create animations and other digital doo-dads that enliven today's top websites. Having Flash deeply embedded into a media player could make delivering ads side by side slicker and more relevant, something that's likely to interest both Google (Nasdaq: GOOG) and Yahoo! (Nasdaq: YHOO), among others.

Still, iTunes is iTunes, and Windows Media Player is Windows Media Player. Together, they're responsible for more than 100 million user accounts, according to Nielsen Online. But, interestingly, it's iTunes that is the junior partner in that tandem, with some 35.6 million user accounts vs. more than 75 million for Windows Media Player.

Could Adobe help Apple close the gap? An $18.4 billion war chest gives you the opportunity to find out, Steve.

Get your clicks with related Foolishness:

Closed for 15 months – opening 10 days only! Get notified ahead of time as our expert portfolio manager invests $1 MILLION in the best opportunities from across The Motley Fool’s premium investment services. This is the first open since August 2008, by invitation only. Enter email below.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 618349, ~/Articles/ArticleHandler.aspx, 11/10/2009 8:18:46 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

The Must-Read Story on Fool.com
Health-Care Reform: A Tale of Two Chambers

Related Tickers

11/9/2009 4:00 PM
AAPL $201.46 Up +7.12 +3.66%
Apple, Inc. CAPS Rating: ***
ADBE $36.45 Up +1.80 +5.19%
Adobe Systems, Inc… CAPS Rating: *****
GOOG $562.51 Up +11.41 +2.07%
Google, Inc. CAPS Rating: ***
MSFT $28.99 Up +0.47 +1.65%
Microsoft Corp CAPS Rating: ***
RNWK $3.81 Up +0.03 +0.79%
RealNetworks, Inc. CAPS Rating: **
YHOO $16.02 Up +0.08 +0.50%
Yahoo!, Inc. CAPS Rating: **

Community: Investing Wiki

Term Of The Hour

International fund: An international fund is a mutual fund that invests in the stocks of foreign countries. They vary widely. Check the prospectus for details of which countries or groups of countries are represented in a given fund.

Want to learn more or edit this definition?
Click here to read more!