
Iron Man: Steve Jobs is even tougher than you think - naish
http://www.pbs.org/cringely/pulpit/2008/pulpit_20080502_004815.html
======
shimon
This article has little to do with Steve Jobs. It's about Apple's purported
attempts to sell its professional media software businesses (Aperture, Final
Cut, etc.) and, according to an existing Cringely theory, the use of this sale
to enable Apple to acquire Adobe without without developing a video editing
software monopoly.

I don't see any reason to believe apple is doing more than spinning off some
niche businesses. They're trying to grow iPod Users into Mac users rather than
invest more in strengthening the loyalty of the traditional art/media
demographic. And an Adobe acquisition just seems absurd, both limited in its
potential upside for both companies and highly uncharacteristic of Apple,
which seems to prefer acquiring cool new technologies (e.g. touch-based
controls) and developing them into its own product lines rather than merging
with major stodgy companies.

------
mikesabat
Right now we are seeing (more) simple desktop apps (Word/Excel) getting
competition from web apps like google docs. If MS would have sold off the
Office franchise 4 years ago it may have been genius.

With Aviary, Photoshop express (?), apple may be looking long term and
realizing these properties are at the height of their value. Could Final Cut
have legitimate competition on the web in 5 years?

~~~
wanorris
> Right now we are seeing (more) simple desktop apps (Word/Excel) getting
> competition from web apps like google docs.

The core profit center for Office is businesses, especially large ones. My
guess is that Google Apps is having negligible impact on the profitability of
Office at this point.

The people who are using Google Office are mostly people who would have been
candidates for pirating Office 5 years ago.

In the future, Google Apps may be a real threat to Office, but the profit
stream generated by Office is so immense that Microsoft investors would
actively revolt if they even publicly considered selling it off.

~~~
boucher
Google Apps doesn't even come close to competing with Office at this point. It
simply lacks far too many features that users of Office actually need. You're
totally right that its mainly targeted at people who never paid for Office,
and even those people aren't using it in staggering numbers.

------
mcormier
Excluding Next has Apple ever bought a big company?

All the acquisitions I know of have been small and medium size companies and
the technology has been something strategic; like coverflow.

~~~
dangoldin
From Bloomberg, AAPL Acquisitons since 1990:

Date * Type of Action Summary

2/ 4/97 Acquisition Target: Next Computer Inc

9/ 2/97 Acquisition Target: Power Computing Corp

4/11/00 Acquisition Target: DVD authoring software

3/14/01 * Acquisition Target: PowerSchool Inc

7/ 9/01 * Acquisition Target: Spruce Technologies Inc

4/ 4/02 Acquisition Target: Zayante Inc

7/ 1/02 Acquisition Target: eMagic.com LLC/Germany

12/ 4/06 Acquisition Target: Proximity Corp

4/23/08 Acquisition Target: P.A. Semi Inc

Even better:
[http://en.wikipedia.org/wiki/List_of_acquisitions_by_Apple_I...](http://en.wikipedia.org/wiki/List_of_acquisitions_by_Apple_Inc).

Contains prices - biggest one was NeXT for 400M and then PA Semi for 278M

~~~
mcormier
Thanks Dan,

It's interesting to note that 5 of those 13 acquisitions are for video editing
software, and 1 is for DVD authoring software. It's also interesting to note
that the last video editing software purchase was in 2006. Apple shopping
their video division is surprising but not shocking. Apple buying Adobe seems
nonsensical when looking at this list.

I misspoke about coverflow, they didn't buy the company, but bought the rights
to the technology the company developed.

<http://www.steelskies.com/coverflow/>

~~~
joao
Apple also bought, what was the basis of, Final Cut from Macromedia when the
product was being developed to be a competitor to Premiere, but Macromedia
management decided not to pursue that segment and it was sold to Apple.

------
mlinsey
Why would Apple want to buy Adobe in the first place?

~~~
wanorris
I don't buy the QuickTime + Flash = video monopoly thing, but there are some
good reasons.

If Apple owned CS3, Flash, and Reader, they would have enough control over the
Mac app market that they would have the leverage to start an app
purchase/management system where you could buy your apps over iTunes or
something similar, and they were automagically installed and updated for you.
That's a big step forward in both usability and control, which are two of
Steve Jobs's three favorite things (along with design).

It would also allow them to push forward their strategy of using high-profile
cross-platform apps (currently, iTunes, QuickTime, and Safari) to build
awareness of Apple among Windows users to try to encourage them to switch.
Flash and Adobe Reader are surely among the top 5 most popular non-Microsoft
apps on Windows, and Photoshop has a lot of presence as well.

Buying Adobe is potentially an enormous win for Apple.

