According to the rumors, Microsoft and Adobe are looking to enter into an alliance, which sure is going to be a fodder for antitrust
folks. The two companies' heads' recently had a meeting where their major point of discussion was combating the challenges posed by iPhone. Adobe and Apple have had sour relationship since the Cupertino company refused to use the technology for its products, whereas, it is also the biggest roadblock for Microsoft, which is looking to plant its feet in mobile segment.
The possible implications of the alliance may be the merger of Flash and Microsoft's Silverlight technology. However, the road to the merger won't be smooth, since Microsoft had earlier tried to woo Adobe, but things could never progress beyond informal level, since any collaboration of this magnitude is sure to attract scrutiny from the Justice Department. However, there are some sources which have pointed to the fact that Microsoft changed a lot from those times and is no longer the dominant forces it used to be. So this time, it just might go ahead and finish the task.
The merger between the two companies may also pressurize Adobe in concentrating only on Windows products and leaving other platforms such as BlackBerry and Android high and dry. Both the companies declined to issue any comments. Keep watching this space for more info.
Source: NYT, Intomobile