Adobe Systems Incorporated is down 6.03% in afternoon trading after rocketing upwards yesterday on takeover rumours. Reports were announced yesterday that Microsoft CEO Steve Ballmer was in talks with Adobe executives. Adobe System shares jumped on the news just before 3pm yesterday. Today the stock pulled back as investors came to their senses and became more skeptical of the merger.
The ailing technology company, which makes the popular Photoshop and Flash products, disappointed investors during the last quarter's conference call in September. The stock plummeted on the news, which some say may be due to Apple, whose devices do not support Flash.
Microsoft, who has been lagging in the game against the likes of Apple and Google has been looking for some time to make an acquisition. It is estimated that Adobe would cost the tech giant over $15 Billion, which is Adobe's current market capitalization.
"What do you get if you merge two struggling companies such as Microsoft and Adobe?" Asked Andy "Raw" Kibbens, co-CEO of The Markets Are Open rhetorically in an interview. "I don't know, but I'd be a seller of whatever is left."
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