Corel CEO Sees Opportunities in Adobe-Macromedia Merger

Concentration of key graphics software in one company could be a problem for Apple, Corel CEO Amish Mehta says.

Figures in the software industry have given their first takes on the dealthat has Adobe Systems Inc. buying up Macromedia Inc., one of its leading rivals in the design and publishing market.

The two companies announced this morning that Adobe would acquire its rival in a takeover worth around $3.4 billion.

Amish Mehta, CEO of Corel Corp., which competes with both Adobe and Macromedia with its CorelDRAW Graphics, described the deal as "no big surprise. Consolidation has been going on for years in the software industry, and this is a continuation of that."

Mehta acknowledged that the deal might lead to decreased competition, but claimed that this might not be bad for existing Macromedia customers.

"At the moment, Macromedia is a one core-technology company. This deal means it will be able to offer more to those customers," he added.

The deal also offers several opportunities to Corel.

According to Mehta, the effective disappearance of Macromedia—the companys brand will vanish after the takeover is completed—leaves Corel as the sole remaining alternative to Adobe in the graphics market.

And for Mac users, the news might lead to some concerns.

"Today if youre Apple, you cant be too excited about this, as it leaves a lot of key software concentrated in a single company. Hence, theres an opportunity for us to say, Hey, were here, lets work together."