Macromedia

Macromedia was an American graphics and web development software company (1992–2005) headquartered in San Francisco, California that produced such products as Flash and Dreamweaver. Its rival, Adobe Systems, acquired Macromedia on December 3, 2005 and controls the line of Macromedia products.

History
Macromedia originated with the merger of Authorware Inc. (makers of Authorware) and MacroMind-Paracomp (makers of MacroMind Director) that was announced in March 1992. The name was derived from a proposed multimedia file format. The combined company's IPO raised about US$27 million on NASDAQ on December 14, 1993.

Macromedia Director, an interactive multimedia-authoring tool used to make CD-ROMs and information kiosks, served as Macromedia's flagship product until the mid-1990's. As the CD-ROM market began to decline and the World Wide Web gained in popularity, Macromedia created Shockwave, a Director-viewer plugin for web browsers, but decided it also needed to expand its market by branching out into web-native media tools. CompuServe was the first company to integrate Shockwave. In October 1995, Macromedia licensed Sun's Java; Sun worked with Macromedia to integrate Java into Macromedia's multimedia software. By 2002, Macromedia produced more than 20 products and had 30 offices in 13 different countries.

Acquisitions
In January 1995, Macromedia acquired Altsys Corporation after Adobe Systems announced a merger with Altsys’ business partner, the Aldus Corporation. Altsys was the developer of the vector-drawing program, FreeHand, which had been licensed by Aldus for marketing and sales. Because of the competition with the similar Adobe Illustrator, the Federal Trade Commission issued a complaint of Adobe Systems on October 18, 1994 ordering a divestiture of FreeHand back to Altsys. 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 technologies to support its web strategy.

To jumpstart its web strategy further, Macromedia made two acquisitions in 1996. First, Macromedia acquired FutureWave Software, makers of FutureSplash Animator, an animation tool which FutureWave Software had 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 Web, where most users, at the time, had low-bandwidth connections. Macromedia renamed Splash to Macromedia Flash, and following the lead of Netscape, distributed the Flash Player as a free browser plugin in order to quickly gain market share. As of 2005, more computers worldwide had the Flash Player installed than any other Web media format, including Java, QuickTime, Real Networks and Windows Media Player. 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.



Also in 1996, Macromedia acquired iBand, maker of the fledgling Backstage HTML authoring-tool and application-server. Macromedia developed a new HTML-authoring tool, Macromedia Dreamweaver, around portions of the Backstage codebase and released the first version in 1997. 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. Over the next few years Dreamweaver became widely adopted among professional web authors, though many still preferred to hand-code, and remained a strong competitor among amateur and business users.

Macromedia continued on the merger and acquisition trail: in December 1999, it acquired traffic analysis software company Andromedia. Web development company Allaire was acquired in 2001 and Macromedia added several popular server and Web developments 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.

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 Captivate). Many of the developers of RoboHelp went on to form MadCap Software which is a competitor in the help-authoring space.

Purchase
On April 18, 2005, Adobe Systems announced an agreement to acquire Macromedia in a stock swap valued at about $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. Bruce Chizen, the CEO of Adobe at the time, stated that it was "all about growth." However, the deal was also a defensive maneuver against the influence of Microsoft, with Chizen saying, "They have a $40 billion monopoly with unlimited resources, I'll never not worry about them."

Lawsuits
On August 22, 1997, stockholders filed a class-action lawsuit in the California Superior Court in San Francisco, "accusing Macromedia and five executives including chairman, CEO, and former president, John Colligan of misleading stockholders on the company's product success and financial health and of engaging in insider trading during the class period of April 18, 1996 to January 9, 1997". A similar suit had been filed in July.

Leadership

 * 1990: MacroMind chairman Marc Canter and president John Scull stepped down and were succeeded by EA co-founder Tim Mott.
 * 1991: Marc Canter was ousted and Tim Mott took over as CEO of the newly-merged MacroMind-Paracomp.
 * 1992: Tim Mott co-founded Macromedia with Bud Colligan, the CEO of Authorware Inc., when MacroMind-Paracomp merged with Authorware. Mott became chairman and CEO of Macromedia; Colligan became president and COO.
 * 1993: Bud Colligan became CEO of Macromedia, a position he held until 1997. He remained as chairman of the board until 1998.
 * 1994: Altsys founder and CEO James Von Ehr became vice president and general manager of Macromedia's Digital Arts Group, a position he held until 1997. He remained on the board until 1998.
 * 1995: Phil Schiller became vice president of marketing, a position he held until leaving for Apple Computer in 1997.
 * 1996: Alias Research CEO Rob Burgess became president of Macromedia.
 * 1997: Rob Burgess became CEO of Macromedia, a position he held until 2005. He served as chairman of the board from 1998 to 2005, when the company was acquired by Adobe.
 * 1997: Norm Meyrowitz became president of Macromedia products, a position he held until 2004.
 * 1997: Betsey Nelson became Chief Financial Officer, a position she held until Macromedia was acquired by Adobe.
 * 2001: Allaire co-founder Jeremy Allaire became Chief Technology Officer of Macromedia, a position he held until 2003. He remained with Macromedia as founder emeritus.
 * 2003: Presedia co-founder Kevin Lynch became Chief Software Architect of Macromedia. After Adobe's acquisition of Macromedia, he became Chief Technology Officer of Adobe.
 * 2004: FutureWave Software co-founder Jonathan Gay became Chief Technology Officer of Macromedia.
 * 2004: Stephen Elop became Chief Operating Officer of Macromedia.
 * 2005: Stephen Elop had been CEO for three months when Macromedia announced it would be acquired by Adobe.

Articles

 * Flash In The Pan: Historical Lessons Of Adobe's Macromedia Acquisition by Victor Wong (2015-09-28)
 * Microbe Inc. by Victor Wong (2015-09-28)