Is Adobe Likely To Gain From Its Buyout Of Mettle's SkyBox?
Zacks Investment Research | Jun 25, 2017 09:10PM ET
Adobe Systems Incorporated (NASDAQ:ADBE) and Mettle have been partners since 2010 and Adobe’s acquisition of Mettle’s SkyBox suite appears to be a move to further strengthen their ties.
The two companies separately announced the acquisition on Jun 21 but didn’t disclose the financial details. As part of it, Mettle co-founder Chris Bobotics will join Adobe as director of professional video. Mettle will continue as a standalone company, led by another co-founder Nancy Eperjesy.
The SkyBox suite includes workflow tools for virtual reality (VR) applications and 360-degree videos. Adobe has been using SkyBox plug-ins for post-production in Adobe Premiere Pro CC and Adobe After Effects CC. This technology is also used by companies like Alphabet’s (NASDAQ:GOOGL) Google, Facebook (NASDAQ:FB) , Apple (NASDAQ:AAPL) , CNN, HBO and New York Times.
Adobe to Strengthen its Creative Cloud Offering
Adobe said that the new functionality will be incorporated exclusively with Premiere Pro and After Effects later this year. The company has been strengthening its Creative Cloud’s VR and VR apps portfolio in recent months and Mettle’s specialized plug-ins should ramp up the process.
Digital Media Segment Poised to Benefit
We expect the move to boost Adobe’s Digital Media segment since Creative Cloud is the segment’s flagship offering. The segment did well in the second-quarter of fiscal 2017, surging 29% year over year to $1.21 billion.
Total Digital Media annualized recurring revenue (ARR) increased to $4.56 billion at the end of the quarter, reflecting an increase of $312 million and indicating strong growth in the Creative Cloud and Document Cloud businesses. Creative revenues touched $1.01 billion in the quarter, up 34% year over year. Creative ARR increased $285 million to $4.04 billion. (Read more: Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.