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  1. #1
    Irritability Defined
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    Surprise.. Two of the biggest forces in the Web industry merge.

    ===================================================
    SAN FRANCISCO, Calif. and NEWTON, Mass., Jan. 16, 2001--Macromedia, Inc. (NASDAQ: MACR) and Allaire Corporation (NASDAQ: ALLR) today announced a definitive merger agreement. The combined company will unite the Web design and development communities and enable Web professionals to efficiently build the look of a Web site and the application logic behind it--creating the best possible user experience across multiple devices.

    The transaction, valued at approximately $360 million on a fully-diluted basis, brings together market-leading server, authoring and playback software to make Web development more efficient, affordable, and accessible. Under the terms of the definitive merger agreement unanimously approved by each company’s board of directors, Macromedia will acquire Allaire. Rob Burgess, chairman and CEO of Macromedia, will continue as chairman and CEO of the combined company, which will retain the Macromedia name. Jeremy Allaire, CTO of Allaire, will be the CTO of Macromedia, reporting to Kevin Lynch, president of Macromedia products.

    “This merger is a natural. Combining the technology and talent of Macromedia and Allaire will bring Web professionals a complete, accessible way to build engaging, dynamic Web sites and applications,” said Burgess. “With this merger, we are taking the next logical step in empowering developers to create--and users to enjoy--a new generation of compelling Web experiences on everything from personal computers and set-top boxes to PDAs and beyond.”

    “Allaire and Macromedia share a common vision, business model, and corporate culture,” said David Orfao, president and CEO of Allaire. “This merger will bring together complementary products, extensive channels, and first-rate service organizations into a powerful combined company that will lead the Web software industry.”

    The strengths of the combined company include:
    · A comprehensive, market-leading authoring and server product line;
    · Macromedia® Dreamweaver®, the leading professional visual HTML editor, with more than a 70 percent market share;
    · Macromedia® Flash™, the rich media standard, with a 96 percent Web penetration;
    · Allaire™ ColdFusion®, the leading cross-platform Web application server;
    · Allaire™ JRun™, the volume leader in J2EE application servers;
    · High volume distribution of software through complementary channels; and
    · A combined customer base of more than two million, ranging from Web designers to application developers to Java programmers.

    The combined company will evolve its Web development platform with support for open industry standards. The first step is to deliver on Allaire’s plan to bring the development model of ColdFusion to the J2EE standard. This will enable an approachable, productive solution for building applications on the Java platform using industry standard technologies such as XML and JSP. The next step will be to develop a set of application services--reusable components and application logic--that enhance the major software platforms including Java and Microsoft .NET.

    As the Web evolves, users will access content not just through PCs but via a wide variety of devices.The combined company will work towards empowering developers with an efficient way to develop once for multiple devices and then serve these applications without having to redevelop application logic for each device.

    "Our combined user communities are at the forefront of defining today's Web experiences," said Lynch. "Together, we will lead the way in constructing the dynamic, multi-device Web of the future, and deliver this across industry standard application servers."

    In the merger, Macromedia will exchange 0.2 shares of its stock and $3 in cash for each Allaire share. The merger will be accounted for as a purchase combination and is expected to be accretive in Macromedia’s fiscal year 2002. This transaction is subject to certain closing conditions, including regulatory approvals and the approval of the Allaire shareholders, and is expected to close by the second calendar quarter of 2001. In connection with the merger agreement, Allaire has granted Macromedia an option to acquire 19.9 percent of Allaire’s stock, exercisable in certain circumstances.

    ABOUT ALLAIRE
    Allaire brings e-business innovation within everyone's reach. Technology professionals worldwide rely on Allaire's software products to rapidly and cost-effectively build their business on the Web. With a proven software foundation and a worldwide partner network, Allaire has enabled thousands of companies to deliver innovative Internet business solutions. Headquartered in Newton, Mass. with over 550 employees, Allaire has offices in North America, Europe and Asia Pacific and can be found on the World Wide Web at http://www.allaire.com.

    ABOUT MACROMEDIA
    Macromedia is passionate about what the Web can be. Its award-winning products empower developers to provide the most engaging experiences on the Web, and enable more effective e-business. Headquartered in San Francisco, Macromedia (NASDAQ: MACR) has more than 1,200 employees worldwide and is available on the Internet at http://www.macromedia.com.
    ========================================

    My oh my - I'm looking forward to Cold Fusion mixed with MacroMedia products. *drools*
    My 2 Cents (or is that 2.2 Cents including GST?)

  2. #2
    Serial Publisher silver trophy aspen's Avatar
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    · Allaire™ ColdFusion®, the leading cross-platform Web application server;
    Thanks for the heads up but I gotta give special attention to that piece of info.
    Chris Beasley - I publish content and ecommerce sites.
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  3. #3
    Irritability Defined
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    Hehehehe
    My 2 Cents (or is that 2.2 Cents including GST?)

  4. #4
    SitePoint Wizard silver trophy TheOriginalH's Avatar
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    Thought this might be on the cards, recieved this a while ago - it's free if any uk based sitepoint users wanna attend:

    > You're invited to one of our FREE Macromedia seminars --
    > we're coming to a city near you!
    >
    > See the newly announced versions of Macromedia
    > Dreamweaver 4, Dreamweaver UltraDev 4, and Fireworks 4!
    > To register, visit:
    > http://www.macromedia.com/uk/events/webpublishing
    >
    > ~~~~~~~
    > Also, Allaire and Macromedia are offering a FREE joint
    > seminar in London on 23 January 2001 -- visit:
    > http://www.allaire.com/Company/Semin...Macromedia.cfm
    ~The Artist Latterly Known as Crazy Hamster~
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  5. #5
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    I thought Allaire and macromedia were trying to sue the pants off each other in the courts? Or was that Adobe?
    <Edited by ady on 01-18-2001 at 09:32 AM>
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    Yes Adobe is suing (maybe was now... I don't know any more) Macromedia for patent infringement - they don't like the similar user interfaces.

    Macaromedia and Allaire seem to have been getting closer and closer since Ultra Dev.

    I hope we are in for some exciting stuff, I must admit I do like Macromedia's stuff... if only php would become part of Ultra Dev though

  7. #7
    I'm a college yuppie now! sbdi's Avatar
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    ok but can anything really good come from this as in cheaper prices? or now that they own allaire will they start putting up prices or what
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    Irritability Defined
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    You'll probably see plenty of integration (as expected) between the Allaire and Macromedia products, though with the extra features I wouldn't be surprised if prices are jacked up to cover the costs...
    My 2 Cents (or is that 2.2 Cents including GST?)

  9. #9
    Don't get too close, I bite! Nicky's Avatar
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    Originally posted by TheOriginalH
    Thought this might be on the cards, recieved this a while ago - it's free if any uk based sitepoint users wanna attend:

    &gt; You're invited to one of our FREE Macromedia seminars --
    &gt; we're coming to a city near you!
    &gt;
    &gt; See the newly announced versions of Macromedia
    &gt; Dreamweaver 4, Dreamweaver UltraDev 4, and Fireworks 4!
    &gt; To register, visit:
    &gt; http://www.macromedia.com/uk/events/webpublishing
    &gt;
    &gt; ~~~~~~~
    &gt; Also, Allaire and Macromedia are offering a FREE joint
    &gt; seminar in London on 23 January 2001 -- visit:
    &gt; http://www.allaire.com/Company/Semin...Macromedia.cfm
    I have been to one of them, they are OK you get to ask questions and you get freebies but to tell you the truth I don't really have the time to go and listen to Macromedia salesmen telling me how brilliant their products are and how they will improve my life if I buy them all in a bundle Basically that is what they are - a sales pitch!

    If you have the time though, go! It's a bit of harmless fun and you might get picked on to ask a question in public!

  10. #10
    Irritability Defined
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    Yeah, such as.......

    "Will you give everyone in this crowd a 50% discount on all your products today only?"
    My 2 Cents (or is that 2.2 Cents including GST?)

  11. #11
    SitePoint Wizard jumpthru's Avatar
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    I think this is one of the greatest mergers ever. I am really exicted about this, considering Macromedia is my favoirite company, and I love all their software, and Homesite isn't to shabby either.

  12. #12
    SitePoint Wizard TWTCommish's Avatar
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    Wow, this is a shock! I guess I figured I'd have heard something about this beforehand - rumors and such. Quite a surprise, here.

    I don't know what to think of it really - I'm not a Cold Fusion developer and I've only used Macromedia's products sparingly, so I probably won't notice any immediate and/or significant changes.

    That said, I usually like the idea of mergers, so until further notice, I've got no problem with it!

  13. #13
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    Hmmmm... I wonder if this could have anything to do with Macromedia's odd decision not to extend UltraDev support to PHP?

    If Macromedia is on the ball, they'll drop all costs at the server on Cold Fusion, and satisfy themselves with building developer's tools and having that much more input as to where the web is heading. I would learn CFM then.

  14. #14
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    what i wonder is WHY macromedia acquire allaire ? .. i mean, both of them are equally popular companies... why not just become macrollaire ? .. or something of that sort and form a new company...
    cogito, ergo sum

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    SitePoint Wizard creole's Avatar
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    holy shnikies!!

    Think of the possibilites...
    Flash embedded with Cold Fusion code?...

    Ultra Dev does Cold Fusion code? of course I would rather it did PHP/mySQL but whos complaining.

    That probably mean that Macromedia will bring Cold Fusion to the Mac too...for any of you Mac users out there.

    man this is big...
    Adobe Certified Coldfusion MX 7 Developer
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  16. #16
    I'm a college yuppie now! sbdi's Avatar
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    erm i dont see what extra you could do with flash and cold fusion and last time i used homesite or studio im not sure which one it was but it had a sql option someplace in it
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    SitePoint Wizard wdmny's Avatar
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    Even though Adobe is sueing Macromedia, if they merged, now that would rock. Adobe and Macromedia are both leaders in their categories and both make some awesome products.

  18. #18
    SitePoint Zealot
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    Macromedia and Adobe merging would probably kill competition in the 2D graphics/webdesign space. There would be advantages, but I foresee problems if it were to happen. As I mentioned, Macromedia has already shown its arrogance in not making PHP available on Ultradev, despite it rivalling ASP as their single biggest potential market.

    Ultradev already handles Cold Fusion.

    Buying Allaire is a shrewd move, but it is open to question as to whether Macromedia will handle this correctly. If they make Cold Fusion free at the server, then they are on their way to controlling a big part of the Internet. Cold Fusion is easier than PHP or ASP, and it would have two refined development environments devoted to it. Being a markup language, learning it would be an extension of learning HTML for serious webdesigners, and not a jump into the world of programming the way PHP, ASP, and JSP are.

    If they don't make Cold Fusion free, then it will continue its downward descent at the expense of ASP and PHP. I don't think there is any way around that.

  19. #19
    SitePoint Wizard creole's Avatar
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    Who brought up an Adobe and Macromedia merger? That wasn't the topic, plus the fact that would never happen. Adobe is too arrogant...not Macromedia.
    Adobe Certified Coldfusion MX 7 Developer
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  20. #20
    Irritability Defined
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    Originally posted by creole
    Who brought up an Adobe and Macromedia merger? That wasn't the topic, plus the fact that would never happen. Adobe is too arrogant...not Macromedia.
    I agree. Back on topic, thank you ladies and gentlemen. Even though the ramifications of Adobe + Macromedia merging would be quite astounding, we all know it's not gonna happen

    Originally posted by jfiliss
    Buying Allaire is a shrewd move, but it is open to question as to whether Macromedia will handle this correctly. If they make Cold Fusion free at the server, then they are on their way to controlling a big part of the Internet. Cold Fusion is easier than PHP or ASP, and it would have two refined development environments devoted to it. Being a markup language, learning it would be an extension of learning HTML for serious webdesigners, and not a jump into the world of programming the way PHP, ASP, and JSP are.

    If they don't make Cold Fusion free, then it will continue its downward descent at the expense of ASP and PHP. I don't think there is any way around that.
    Also totally agree. Cold Fusion is phenomenal, but if they don't stop charging thousands of dollars for its use ASP and PHP will win the day. No doubt about it.
    My 2 Cents (or is that 2.2 Cents including GST?)

  21. #21
    SitePoint Wizard jumpthru's Avatar
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    Okay, I can not belive UltraDev doesn't include PHP and MySQL...that would be SOOO sweet if it did...

    But I also cant belive the great point someone brought up...

    Macromdedia didn't put PHP in their because if they bought Allair, it wouldn't be supporting Cold Fusion. I think that is a very very bad move if its true...but then again, why would they include ASP in it? It would be the best if they included PHP/MySQL then made Cold Fusion free also...

    PS, what does CMF stand for?

    PSS, why do they say that Macromedia bought Allair, then say it was a merger, etc...?

  22. #22
    Irritability Defined
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    Nate, that's the other interesting point I find about the press release. It clearly says 'Merger', then proceeds to say Macromedia 'bought' Allaire. I guess the management structure remaining the same at Allaire means it's not a 'full sale' or something.

    Btw, did you say CMF or CFM (Cold Fusion Markup)?
    My 2 Cents (or is that 2.2 Cents including GST?)

  23. #23
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    Ultradev was built upon the functionality of the earlier product Drumbeat, produced by another company that Macromedia purchased. This product already supported ASP and JSP, so that explains those two. And of course, ASP is simply a natural in a product like UltraDev.

    When UltraDev came out, they added CFM to the mix. This didn't make a lot of sense, as CFM was already being eclipsed by PHP and ASP, and Cold Fusion already has its own development environment from Allaire. Anyway, it seemed like simply a bad decision, as a lot of the Macromedia guys in the Ultradev newsgroup stated how much they liked PHP, and thought it would be the next big thing. I recall one of them saying they only had time to add one more language to make the release date.

    When I saw the latest version of Ultradev, and that PHP didn't make the mix, I'd have to say some corporate politics/maneuvering is involved. That is simply how corporate business works.

    If Macromedia makes Cold Fusion free, then I don't really care. I think it's amazing that a markup language can compete so successfully against a programming language, and would be happy to work in the CFM environment. But if Macromedia doesn't make it free, they are going to eventually get burned by ASP, which is on its way to becoming the most powerful option with ASP+ and C#, and PHP, which is right now the language that is most likely to eclipse Perl's role in being the duct tape of the Internet.

    If they do make it free, they will lose some short term income, but perhaps be second only to Microsoft as the company with the most control over the direction of the Internet.

  24. #24
    SitePoint Wizard jumpthru's Avatar
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    Whats C#?

  25. #25
    Irritability Defined
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    http://webopedia.internet.com/TERM/C/C_sharp.html

    Check MSDN and TechNet for further info.
    My 2 Cents (or is that 2.2 Cents including GST?)


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