Posted October 29, 2018 07:24:00 Microsoft and ad exchange giant Adobe have agreed to merge in an effort to bring the two firms closer together, according to a report by Computerworld.
The deal will see Microsoft merge with Adobe to form a “digital media company” that will focus on digital advertising and content exchange.
The company will continue to operate as Adobe, Computerworld said.
The merger will give Microsoft more control over Adobe’s digital products and services, including its advertising, content exchange and payment products.
Microsoft CEO Satya Nadella has been one of the most vocal supporters of the merger, which he called a “win-win” for Microsoft and for consumers.
Microsoft shares were up about 3% to $68.80 in after-hours trading.
Adobe shares were down about 1% to about $2.35.
Both companies will be subject to a merger review by the Federal Trade Commission and will need to report quarterly earnings by September 1.
Microsoft is expected to make its final quarterly financial results on October 1, but it has yet to disclose its financial results.
Adobe has been battling Microsoft in recent years for dominance of the digital ad marketplace.
The two firms have been at odds over copyright, licensing, privacy, and other issues, and Microsoft’s acquisition of the software company in 2015 raised concerns about the impact on the future of the company.
In its announcement, Microsoft said it will take “a bolder, more aggressive approach” to antitrust enforcement in the digital advertising space.
The new company will focus “on the intersection of technology and commerce,” it said. Read more