Macromedia#Acquisitions

Macromedia was formed from the April 1992 merger of Authorware Inc. (makers of Authorware) and MacroMind–Paracomp (makers of MacroMind Director). At the time, analysts estimated the multimedia software industry to be worth $200 million, and the combined company would control 20% of the market. Tim Mott of MacroMind was named chairman and chief executive officer and Bud Colligan of Authorware became president and CEO of the new company.{{Cite web |date=March 3, 1992 |title=Multimedia software companies to merge |url=https://www.upi.com/Archives/1992/03/03/Multimedia-software-companies-to-merge/2201699598800/ |access-date=2025-01-01 |website=UPI |language=en}}{{Cite web |last=Archives |first=L. A. Times |date=1992-03-04 |title=TECHNOLOGY |url=https://www.latimes.com/archives/la-xpm-1992-03-04-fi-2892-story.html |access-date=2025-01-01 |website=Los Angeles Times |language=en-US}}

Director, an interactive multimedia-authoring tool used to make presentations, animations, CD-ROMs and information kiosks, served as the company's flagship product. Director was used in the creation of many multimedia projects, training programs and presentations for American Airlines, AT&T, and Kellogg's, and even Hollywood films like Jurassic Park and The Firm.{{Cite news |last=Fisher |first=Lawrence M. |date=1993-09-19 |title=Technology; The Tools of a New Art Form |url=https://www.nytimes.com/1993/09/19/business/technology-the-tools-of-a-new-art-form.html |url-status=live |archive-url=http://web.archive.org/web/20220618094537/https://www.nytimes.com/1993/09/19/business/technology-the-tools-of-a-new-art-form.html |archive-date=2022-06-18 |access-date=2025-01-01 |work=The New York Times |language=en}} Authorware was Macromedia's principal product in the interactive learning market.

By 1993, Macromedia was considered the largest supplier of multimedia development tools. The increased demand in CD-ROM players and multimedia experiences helped Macromedia turn a profit. Analysts estimated that Macromedia had 1992 revenues of about $30 million.

As the Internet moved from a university research medium to a commercial network, Macromedia began working to web-enable its existing tools and develop new products. In 1995, it introduced Shockwave Player, a free Director plugin for Netscape Navigator to display interactive content on the web.{{Cite news |last=Ahmad-Taylor |first=Ty |date=1995-12-04 |title=Taking In the Sites; Shockwave Software Brings Animation to Web Users |url=https://www.nytimes.com/1995/12/04/business/taking-in-the-sitesshockwave-software-brings-animation-to-web-users.html |url-status=live |archive-url=http://web.archive.org/web/20240423193645/https://www.nytimes.com/1995/12/04/business/taking-in-the-sitesshockwave-software-brings-animation-to-web-users.html |archive-date=2024-04-23 |access-date=2025-01-01 |work=The New York Times |language=en}} Macromedia licensed Sun's Java Programming Language in October 1995.

In January 1995, Macromedia acquired Altsys Corporation, developer of the vector-drawing program FreeHand and font editor Fontographer. Adobe Systems had acquired Aldus Corporation, which held the marketing rights to FreeHand.{{cite book |last=Vadlamudi |first=Pardhu |url=https://books.google.com/books?id=ejgEAAAAMBAJ&q=altsys+Macromedia+acquisition.&pg=PA24 |title=Macromedia's purchase of Altsys raises questions |date=November 7, 1994 |publisher=InfoWorld. |access-date=February 11, 2011}} Because of the program's similarities with Adobe Illustrator, Altsys protested the sale and the Federal Trade Commission issued a complaint in October 1994, ordering the divestiture of FreeHand back to Altsys.{{cite web |title=Federal Trade Commission Decisions, Complaint 118 F. |url=http://www.freefreehand.org/images/FTC.pdf |url-status=dead |archive-url=https://web.archive.org/web/20100524203011/http://www.freefreehand.org/images/FTC.pdf |archive-date=May 24, 2010 |access-date=February 11, 2011}} The company then sold itself to Macromedia.{{Cite news |last= |first= |date=1995-01-25 |title=COMPANY NEWS; MACROMEDIA COMPLETES ACQUISITION OF ALTSYS |url=https://www.nytimes.com/1995/01/25/business/company-news-macromedia-completes-acquisition-of-altsys.html |access-date=2025-01-03 |work=The New York Times |language=en-US |issn=0362-4331}}

With Macromedia's acquisition of Altsys, it received FreeHand thus expanding its product line of multimedia graphics software to include illustration and design graphics software. FreeHand's vector graphics rendering engine and other software components within the program would prove useful to Macromedia in the development of Fireworks.

Despite early success, Macromedia's stock ultimately plateaued at $63.75 per share in December 1995. By 1997, shares fell as low as $7.13 per share. Rob Burgess was brought on as president in 1996. He laid off 10% of the company's staff, discontinued many products, and put a larger focus on web development.{{Cite web |last=Evangelista |first=Benny |date=December 14, 1998 |title=`Cold Wind From the North' Invigorates Macromedia |url=https://www.sfgate.com/business/article/cold-wind-from-the-north-invigorates-macromedia-2972818.php |access-date=January 5, 2025 |website=SFGATE}}

In March 1996, Macromedia acquired iBand Inc., developer of the Backstage family of dynamic web development tools, for $32 million.{{Cite news |last= |date=1996-03-15 |title=Macromedia in Deal To Acquire Iband |url=https://www.nytimes.com/1996/03/15/business/macromedia-in-deal-to-acquire-iband.html |access-date=2025-01-03 |work=The New York Times |language=en-US |issn=0362-4331}} Macromedia developed a new HTML-authoring tool, Dreamweaver, around portions of the Backstage codebase and released the first version in December 1997.{{Cite web |last=Johnson |first=Joshua |date=August 18, 2011 |title=Why Adobe Doesn’t Understand Web Designers |url=https://designshack.net/articles/software/why-adobe-doesnt-understand-web-designers/ |access-date=2025-01-03 |website=Design Shack |language=en-US}}{{Cite book |last=Lowery |first=Joseph W. |url=https://archive.org/details/dreamweaverbible00lowe/mode/1up?q=1997 |title=Dreamweaver bible |date=1998 |publisher=IDG Books Worldwide |others= |isbn=978-0-7645-3225-2 |location=Foster City, CA |pages=X |via=Internet Archive}}

At the time, most professional web authors preferred to code HTML by hand using text editors because they wanted full control over the source. Dreamweaver addressed this with its "Roundtrip HTML" feature, which attempted to preserve the fidelity of hand-edited source code during visual edits, allowing users to work back and forth between visual and code editing.{{Cite book |last=Darnell |first=Rick |url=https://archive.org/details/usingmacromediad00darn/mode/1up?q=Backstage+ |title=Using Macromedia Dreamweaver 1.2 |last2=Webster |first2=Timothy |date=May 1998 |publisher=Que |others= |isbn=978-0-7897-1626-2 |location=Indianapolis, Indiana |pages=43 |via=Internet Archive}}

Over the next few years Dreamweaver became widely adopted among professional web authors, though many still preferred to hand-code, and Microsoft FrontPage remained a strong competitor among amateur and business users. By October 1999, Nearly 66% of professional web site developers used Dreamweaver.

Macromedia acquired FutureWave Software, makers of FutureSplash Animator, in January 1997. FutureSplash Animator was an animation tool originally developed for pen-based computing devices. Because of the small size of the FutureSplash Viewer application, it was particularly suited for download over the Internet, where most users, at the time, had low-bandwidth connections. Macromedia renamed Splash to Macromedia Flash and distributed the Flash Player as a free browser plugin in order to quickly gain market share.{{Cite news |last=Coale |first=Kristi |date=January 6, 1997 |title=Macromedia Rides the FutureWave |url=https://www.wired.com/1997/01/macromedia-rides-the-futurewave/ |access-date=2025-01-05 |work=Wired |language=en-US |issn=1059-1028}}{{Cite web |date=January 6, 1997 |title=Macromedia expands on Net |url=https://www.cnet.com/tech/tech-industry/macromedia-expands-on-net/ |access-date=2025-01-05 |website=CNET |language=en}}

By April 1998, the company released the technical specifications for its Flash format so other programs could view and edit its files.{{Cite web |last=Wayner |first=Peter |date=April 15, 1998 |title=Technology Companies Push for Standards on Web Images |url=https://archive.nytimes.com/www.nytimes.com/library/tech/98/04/cyber/articles/15graphics.html |access-date=2025-01-05 |website=The New York Times}} Burgess took over as CEO in July 1998, after founder Bud Colligan stepped down. By December, Macromedia was stable again.

Hoping to remain a major player in the increasingly interactive web, Flash Player 6.0 shipped in March 2002 and featured enhanced audio, video, and user interface capabilities. Macromedia also released a bundle of its internet applications in June.{{Cite news |last=Markoff |first=John |date=2002-04-29 |title=Macromedia Lays Out Strategy For More Uses for Flash Player |url=https://www.nytimes.com/2002/04/29/business/macromedia-lays-out-strategy-for-more-uses-for-flash-player.html |access-date=2025-01-05 |work=The New York Times |language=en-US |issn=0362-4331}}

By 2005, more computers worldwide had the Flash Player installed than any other Web media format, including Java, QuickTime, RealNetworks, and Windows Media Player.{{cite web |last=Festa |first=Paul |date=August 2, 2005 |title=Just a Flash in the Web video pan? |url=http://news.zdnet.co.uk/internet/0,1000000097,39211831,00.htm |archive-url=https://web.archive.org/web/20090109075110/http://news.zdnet.co.uk/internet/0,1000000097,39211831,00.htm |archive-date=January 9, 2009 |access-date=December 26, 2008 |publisher=ZDNet |via=Internet Archive}}

As Flash matured, Macromedia's focus shifted from marketing it as a graphics and media tool to promoting it as a Web application platform, adding scripting and data access capabilities to the player while attempting to retain its small footprint.

Image:Macromedia original logo.svg

In July 1999, Macromedia acquired Elemental Software, gaining control of Drumbeat 2000 and eStore Builder.{{Cite news |last= |first= |date=1999-07-15 |title=Purchase for Macromedia |url=https://www.nytimes.com/1999/07/15/business/purchase-for-macromedia.html |access-date=2025-01-05 |work=The New York Times |language=en-US |issn=0362-4331}} The company also bought web site monitoring and personalization software developer Andromedia for $245 million that December to expand into e-commerce. It further inked alliances with web consulting and marketing services firm USWeb/CKS and e-commerce platform developer Broadvision.{{Cite web |date=October 7, 1999 |title=Macromedia hums the e-business tune |url=https://www.forbes.com/1999/10/07/mu3.html |access-date=2025-01-05 |website=Forbes |language=en}}

Web development company Allaire was acquired in 2001 and Macromedia added several popular servers and Web developments tools to its portfolio, including ColdFusion, a web application server based on the CFML language, JRun, a Java EE application server, and HomeSite, an HTML code editor that was also bundled with Dreamweaver. By 2002, Macromedia had produced more than 20 products and had 30 offices in 13 countries.{{cite web |title=Macromedia Company History |url=http://www.fundinguniverse.com/company-histories/Macromedia-Inc-Company-History.html |access-date=February 17, 2011}}

In 2003, Macromedia acquired the web conferencing company Presedia and continued to develop and enhance their Flash-based online collaboration and presentation product offering under the brand Breeze. Later that year, Macromedia also acquired help authoring software company eHelp Corporation, whose products included RoboHelp and RoboDemo (now Adobe Captivate).

On April 18, 2005, Adobe Systems announced an agreement to acquire Macromedia in a stock swap valued at approximately $3.4 billion on the last trading day before the announcement. The acquisition took place on December 3, 2005, and Adobe integrated the company's operations, networks, and customer care organizations shortly thereafter.{{cite web |url=https://www.adobe.com/aboutadobe/pressroom/pressreleases/200512/120505AdobeAcquiresMacromedia.html |title=Acquisition |publisher=Adobe Systems |access-date=December 29, 2008 |url-status=dead |archive-url=https://web.archive.org/web/20070602174522/http://www.adobe.com/aboutadobe/pressroom/pressreleases/200512/120505AdobeAcquiresMacromedia.html |archive-date=June 2, 2007 }}

On August 22, 1997, stockholders filed a class-action lawsuit in the California Superior Court in San Francisco, accusing Macromedia of misleading stockholders on the company's product success and financial health. A similar suit had been filed a month earlier.{{cite web |url=http://news.cnet.com/Investors-sue-Macromedia-again/2100-1023_3-202966.html |title=Investors sue Macromedia again |publisher=cNet |date=September 4, 1997 |access-date=February 17, 2011|archive-url=https://web.archive.org/web/20120829090341/http://news.cnet.com/Investors-sue-Macromedia-again/2100-1023_3-202966.html|archive-date=August 29, 2012|last=Festa|first=Paul}} The class-action suit was dismissed by a federal judge on May 19, 1998.{{cite web |url=http://www.marketwatch.com/story/macromedia-shareholder-suits-dismissed-05-19-98 |title=Macromedia shareholder suits dismissed 05-19-98 |publisher=MarketWatch|date=May 19, 1998 |access-date=August 29, 2018|last=Murphy|first=Tom}}

On August 10, 2000, Adobe claimed that Macromedia violated two of its patents on tabbed palettes.{{cite web |url=https://www.pcmag.com/article2/0,2817,29207,00.asp |title=Adobe Wins User Interface Suit Against Macromedia|author-link=Sebastian Rupley|first=Sebastian|last=Rupley |publisher=PC Magazine |date=May 6, 2002 |access-date=August 29, 2018}}{{cite web |url=https://www.cnet.com/news/adobe-wins-macromedia-patent-suit/ |title=Adobe wins Macromedia patent suit |website=CNet |date=June 3, 2002 |access-date=August 29, 2018|last=Becker|first=David}} Macromedia countered with a claim that Adobe infringed on Macromedia's patents for a draw-based editor for Web pages and a hierarchical structure editor for Web sites.{{cite web |url=https://www.theregister.co.uk/2002/05/13/macromedia_wins_4_9m/ |title=Macromedia wins $4.9m in Adobe patent suit |website=The Register |date=May 13, 2002 |access-date=August 29, 2018|author=ComputerWire}} In July 2002, Adobe and Macromedia reached an agreement that settled all claims in this series of patent suits.

{{cite web |url=http://www.macworld.com/article/1008577/lawsuit.html |title=Adobe, Macromedia reach agreement in Patent lawsuit |website=Macworld |date=July 29, 2002 |access-date=August 29, 2018|last=Dalrymple|first=Jim}}{{cite web |url=http://www.out-law.com/page-2809 |title=Adobe and Macromedia settle patent lawsuits |publisher=Pinsent Masons |date=July 30, 2002}} Eventually, Adobe acquired Macromedia 3 years later.

Hoping to push into entertainment, Macromedia launched the ShockRave website in February 1998, in partnership with MTV. The website featured interactive music videos, puzzles, games, and animated cartoons.{{Cite web |last=Evenson |first=Laura |date=July 20, 1998 |title=A New Dimension in Music Videos / MTV gets a run for its money with interactive videos |url=https://www.sfgate.com/entertainment/article/a-new-dimension-in-music-videos-mtv-gets-a-run-3001110.php |access-date=January 2, 2025 |website=SFGate}} In May 1999, Macromedia launched Shockwave.com to promote the capabilities of Flash and Shockwave. It featured music, comics, and games, supported offline downloads, and even offered a premium version called Shockmachine.{{Cite web |date=1999-05-24 |title=Shockwave.com announces online entertainment center |url=https://www.deseret.com/1999/5/24/19447260/shockwave-com-announces-online-entertainment-center/ |access-date=2025-01-02 |website=Deseret News |language=en}} South Park creators Trey Parker and Matt Stone were contracted to create an original animated series for the website in exchange for equity in the company.{{Cite web |last=Pollack |first=Andrew |date=December 8, 1999 |title='South Park' Creators Plan Cartoon Series for the Web |url=https://archive.nytimes.com/www.nytimes.com/library/tech/99/12/biztech/articles/08web.html |access-date=2025-01-05 |website=The New York Times}}

In December 1999, the company managed to secure $44 million in funding from Sequoia Capital to support its six million users.{{Cite web |date=August 11, 2006 |title=Shockwaves Reunited? |url=https://www.forbes.com/2006/08/11/shockwave-atom-adope-viacom-cx_rr_0811shock.html |access-date=2025-01-03 |website=Forbes |language=en}} By this point, it was estimated that 100 million people had installed the company's Shockwave and Flash players.{{Cite web |date=June 4, 1999 |title=National Post from Toronto, Ontario, Canada |url=https://www.newspapers.com/newspage/514003300/ |access-date=2025-01-03 |website=National Post |page=37 |language=en-US |publication-place=Toronto, Ontario, Canada |via=Newspapers.com}} In October 1999, Macromedia announced it would spinoff Shockwave as an independent company.{{Cite news |last=Stein |first=Tom |date=1999-10-08 |title=Macromedia Picks Up Andromedia, Sets Shockwave Loose |url=https://www.sfgate.com/business/article/macromedia-picks-up-andromedia-sets-shockwave-2904711.php |url-status=live |archive-url=http://web.archive.org/web/20220630195628/https://www.sfgate.com/business/article/Macromedia-Picks-Up-Andromedia-Sets-Shockwave-2904711.php |archive-date=2022-06-30 |access-date=2025-01-03 |work=SFGATE |language=en-US}} CEO Rob Burgess initially stayed on with both companies.{{Cite web |date=April 25, 2000 |title=The Shockwave.com Of The Future |url=https://www.forbes.com/2000/04/25/feat2.html |access-date=2025-01-03 |website=Forbes |language=en}} Macromedia maintained a majority stake in Shockwave.com until December 2000, when it merged with AtomFilms.{{Cite news |last=Harmon |first=Amy |date=2000-12-16 |title=COMPANY NEWS; SHOCKWAVE.COM SETS ATOMFILMS TAKEOVER |url=https://www.nytimes.com/2000/12/16/business/company-news-shockwavecom-sets-atomfilms-takeover.html |archive-url=http://web.archive.org/web/20241228224305/https://www.nytimes.com/2000/12/16/business/company-news-shockwavecom-sets-atomfilms-takeover.html |archive-date=2024-12-28 |access-date=2025-01-03 |language=en}}

• 1992: Bud Colligan became co-founder and CEO of Macromedia, a position he held until 1997; he served as board chairman 1992–1998.{{cite web |url=http://www.nndb.com/people/275/000171759/ |title=Bud Colligan |publisher=NNDB |access-date=February 17, 2011}}
• 1994: Altsys Corp and CEO James Von Ehr became a Macromedia vice-president, a position he held until 1997.{{cite web |title=Macromedia Company History |url=http://www.fundinguniverse.com/company-histories/Macromedia-Inc-Company-History.html |access-date=February 17, 2011}}
• 1996: Robert K. Burgess was hired as president of Macromedia, and became CEO in 1997, a position he held until 2005; he served as board chairman 1998–2005, a position he held when the company was acquired by Adobe.{{cite web |url=http://www.nndb.com/people/311/000168804/ |title=Robert K. Burgess |publisher=NNDB |access-date=February 17, 2011}}{{cite web |url=https://people.forbes.com/profile/robert-k-burgess/1383 |title=Profile, Robert K. Burgess |work=Forbes |access-date=February 17, 2011|archive-date=March 27, 2010|archive-url=https://web.archive.org/web/20100327135840/https://people.forbes.com/profile/robert-k-burgess/1383|via=Internet Archive}}
• 1997: Betsey Nelson became chief financial officer, a position she held until Macromedia was acquired by Adobe.{{Cite web|url=https://www.adobe.com/macromedia/ir/macr/news/2005/q305_pressrelease02.html |title=Macromedia Names Stephen Elop Chief Executive Office; Rob Burgess Continues As Chairman |publisher=Macromedia |date=January 19, 2005 |access-date=February 17, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110214181332/http://www.adobe.com/macromedia/ir/macr/news/2005/q305_pressrelease02.html |archive-date=February 14, 2011 }}
• 2004: Stephen Elop became chief operating officer.{{cite web|url=https://www.businesswire.com/news/home/20040728005849/en/Macromedia-Names-Stephen-Elop-Chief-Operating-Officer|title=Macromedia Names Stephen Elop as Chief Operating Officer; Core Leadership Team Broadens with New Marketing and Sales Executives. |date=July 28, 2004 |website=Business Wire |access-date=August 29, 2018|author=Macromedia, Inc.}}
• 2005: Stephen Elop had been CEO for three months when Macromedia announced it would be acquired by Adobe.{{cite web|url=http://blogs.computerworld.com/how_will_stephen_elop_fare_at_microsoft |title=How will Stephen Elop fare at Microsoft? |publisher=ComputerWorld |date=January 11, 2008 |access-date=February 17, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110708191517/http://blogs.computerworld.com/how_will_stephen_elop_fare_at_microsoft |archive-date=July 8, 2011 }}

• Adobe Captivate (formerly RoboDemo)
• Adobe ColdFusion
• Adobe Connect (formerly Macromedia Breeze, Adobe Acrobat Connect Pro)
• Adobe Dreamweaver
• Adobe Flash
• Adobe Animate (formerly Flash Professional)
• Adobe Flash Media Server
• Adobe RoboHelp

• Adobe Authorware
• Adobe Contribute
• Adobe Director
• Adobe Fireworks
• Adobe Flash
• Adobe Flash Lite
• Adobe Flash Player
• Adobe Flex
• Macromedia Flex Data Services (rebranded as Adobe LiveCycle Data Services)
• Adobe JRun
• Adobe Shockwave
• Macromedia Aria
• Macromedia Action!
• Macromedia Aftershock
• Macromedia Backstage (became the basis to Macromedia Dreamweaver)
• Macromedia Central (replaced by AIR)
• Macromedia Deck
• Macromedia Drumbeat (replaced by Dreamweaver UltraDev)
• Macromedia Extreme 3D
• Macromedia FlashPaper
• Macromedia Fontographer (sold to FontLab and became Fontographer)
• Macromedia FreeHand
• Macromedia Generator
• Macromedia HomeSite
• Macromedia Kawa
• Macromedia KeyGrip/Macromedia Final Cut (sold to Apple and became Final Cut Pro)
• Macromedia Likeminds
• Macromodel
• Macromedia MediaMaker
• Macromedia Projector
• Macromedia RoboInfo
• Macromedia Shockmachine
• Macromedia Sitespring
• Macromedia SoundEdit 16
• Macromedia Spectra
• Macromedia Web Publishing System
• Macromedia xRes

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