[matrix]

I suppose this is feasible if Microsoft is looking to acquire Adobe's enterprise customer base - the PDF, document management, etc part of the company. Having Air/Flex/Flash might also be nice, but doesn't seem like a good fit for Microsoft's traditional Windows-centric strategy (one they should abandon, in my view - the days of owning the market via the desktop are rapidly coming to a close).

What I'd love to see is Microsoft buy the Flash/PDF side of the company, and then the creative arm (CS, the type foundry, lightroom, etc) be spun off into an independent company that was once again run by people passionate about design and great software.

[mcbain]

What is Microsoft's track record for spinning off companies?

The Photoshop/CS part of Adobe is somewhat profitable, correct? Would MS let it go (even for a bucket of cash)?

[Keyframe]

Softimage was bought for a purpose and spun off later. It was bought by Microsoft to port Softimage|3D (and develop XSI) for NT platform - to show NT is as powerful for those applications as IRIX was. It was done, and it was sold later to AVID, now Softimage is part of Autodesk.

On a side note, I always thought Autodesk was Adobe's natural predator, I was expecting a buy offer from them.

[virtualritz]

It took Soft years to recover from that imho.

When I wrote a an XSI plugin for a feature film production, in 2005, for XSI running on Linux, half of the API was still using COM, it the app required a special gcc version that shipped with the sdk to compile plugins with and the Python was ActiveState Python (which clashed with the Linux system's Python). In short, it was a disaster from a developers, and still a lot of trouble from a user's pov.

Now Adobe doesn't support Linux much but if what MS did to XSI is anything to go by, I wouldn't want to be a developer on one of those apps, after the acquisition.

[Keyframe]

I agree, Softimage was just mishandled. It was brought into Microsoft with a single task, and Sumatra(XSI) was architected at a really bad point in time for them. It was done on the verge of NT era, so they went berserk. Softimage (they have renamed XSI) is now a really solid piece of software, AGAIN mishandled by Autodesk. sigh.

[Tamerlin]

MS managed the fruits of the SoftImage acquisition pretty poorly. It had a lot of potential, particularly since MS could have parlayed it into a part of the premiere games development platform, but they bobbled it pretty badly and ended up with trueSpace instead, which has really never come even close to living up to its potential.

Autodesk and Adobe compete really only in digital audio & video editing, and compositing. The rest of Adobe doesn't really have much impact on any of Autodesk's businesses.

I suspect that Autodesk bought Alias for Alias:Studio rather than for Maya, because Alias:Studio is the Big Dog revenue stream there, and among Autocad's biggest competitors.

[rbanffy]

> MS managed the fruits of the SoftImage acquisition pretty poorly.

It worked very well. You don't see any SGI workstations running visualization software anymore and most such software now runs under Windows. I say they won that war.

They never wanted to have an animation platform. They wanted to ruin SGI.

[Tamerlin]

They had a lot of help ruining SGI from... SGI.

The reason that I suggest that MS ran SoftImage poorly is that under MS, Soft generated negative revenue, even though it was profitable before MS bought it. I have a feeling that it didn't become profitable again after Avid bought it though, because otherwise Avid probably wouldn't have sold it to AutoDesk.

Edit: The funny thing is that MS later acquired Caligari, and now has ANOTHER animation system, which the last I heard was a freebie under Microsoft.

[jpablo]

Expedia is a Microsoft spin off. I guess that one worked ok.

[chollida1]

The Rare team was spun out of Microsoft. They were the video game company that Microsoft bought from Nintendo. They were responsible for Golden Eye, Conquer, and Perfect Dark.

I'm not sure if this would be considered a successful spin off though as Microsoft bought them when they were, IMHO, at their peak.

[nickelplate]

I would not count Rare as a good acquisition: Microsoft bought them for $375M, and they haven't produced a single hit since. To put that in perspective, Bungie (a much smaller studio than Rare at the time) was acquired for less than $40M, and their games and IP generated over $1B (and counting) in revenue for Microsoft.

[chaostheory]

I could be wrong but I remember reading that the second MS bought them, all of Rare's talent left.

[vl]

Are you sure? I can't find any confirmation, for example, they are listed as MS subsidiary on wikipedia.

[chollida1]

> Are you sure? I can't find any confirmation,

Confirmation of what? you don't specify:)

[vl]

Of the fact that Rare team was spun out of Microsoft.

[cloudkj]

I believe CitySearch was also spun off. That one isn't going so well.

I know there are a few core products that were results of acquisitions, namely PowerPoint and Visio. They've pretty much integrated deeply into Microsoft, so that's always a possibility here.

[philwelch]

Bungie was spun off successfully a couple years ago.

[vl]

They still have to ship something successful by themselves after spin off to see if it was a successful spin off.

[Macha]

While Reach and ODST were MS published, they were both made by Bungie post spin off.

[jranck]

Razorfish was acquired when Microsoft bought aQuantive. It was then spun off and sold to Publicis.