Microsoft and Adobe could have remained opponents in the lucrative PC and Internet software businesses, but they may now create an alliance to compete against Apple. Microsoft CEO Steve Ballmer and Adobe CEO Shantan Narayen recently met and it was just a 'routine' discussion between the two CEOs, according to sources, but the rumor mill has been on fire since the private discussions took place.
Both companies have several different business opportunities together, with cross-platform content deals extremely likely. The deal is said to be specific for mobile platforms, but Adobe Flash and Microsoft Silverlight technology could be shared to help better both online services.
"Adobe and Microsoft share millions of customers around the world and the CEOs of the two companies do meet from time to time," Adobe noted in a statement. "However, we do not publicly comment on the timing or topics of their private meetings."
There were also rumors of a Microsoft-Adobe merger at some point, and although the rumors have been temporarily silenced, there is still a possibility of a future acquisition. There is concern that the deal wouldn't pass government antitrust concerns, even though Google, Apple, Oracle, and others are able to close major multi-billion-dollar deals.
This also could prove to be a good step for Microsoft in its ongoing battle with Apple -- Flash hasn't made its way to the Apple iPhone and iPad, but Microsoft could include it with Windows Phone 7 at some point.
This partnership has been created due to a soured relationship between Apple and Adobe, which even led to Apple CEO Steve Jobs' public response to criticism. Since it seems even more unlikely that Apple and Adobe will reach an agreement, Flash has been hacked to run on the iPad.
Microsoft looks to avoid the personal issues and align with a partner also competing with Apple. Unlike Oracle and other major tech powerhouses, Microsoft typically doesn't acquire companies in favor of developing technology in-house.
