The rumors are swirling today about a secret meeting between Microsoft CEO Steve Ballmer and Adobe CEO Shantanu Narayen to discuss a possible Microsoft acquisition of Adobe.

The question is whether it will change the game in favor of Microsoft and Adobe, or whether it benefits their main rival, Apple.

The chatter stems from a report in The New York Times. According to the publication, Ballmer arrived with a small entourage at Adobe’s offices to discuss Apple and its increasing influence over the mobile market via the iPhone (iPhone).

Microsoft, which has lost significant chunks of the mobile market in recent years, is trying to make a big comeback through Windows Phone 7 (Windows Phone 7). Adobe on the other hand suddenly became mortal enemies with Apple after Apple banned Flash from the iPad.

What’s really got the markets stirring though is how the two companies might respond to the Apple threat: via acquisition. According to the report, the possibility of Microsoft acquiring Adobe was discussed. That little tidbit of information drove Adobe’s stock price up 11.5% today.

The Apple brand is way to strong at present with both combined would ‘Microdobe’ or ‘ Adobosoft’ (bad ideas of name merge I know) be able to honestly compete?

Let us know what you think?

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