Adobe buys Macromedia for 3.4 billion
Writing about web page http://www.adobe.com/aboutadobe/invrelations/adobeandmacromedia.html
By combining the passion and creativity of two leading-edge companies, we will continue driving innovations that are changing the ways people everywhere are experiencing and interacting with information.
According to an article in Digit magazine (June 2005), analyst Steven Brazier at Canalys that he sees this as both companies bulking up against Microsoft. The first step will be both vendors supporting each others formats with Adobe likely to start integrating Flash into its products.
It will be extremely interesting to see how such integration develops over the next few years.