A Microsoft acquisition of Adobe would cost $15 billion or more based on Adobe's current market value. It would provide Microsoft with control of Adobe's flash player, used all over the web for video and graphics. Wall Street analysts see it as a possible way for Microsoft to integrate graphics and video capabilities into software it develops for phones and tablet computers.
"It's certainly possible," said Morningstar analyst Toan Tran of a potential deal. "It may be a case of 'the enemy of my enemy is my friend' and both Microsoft and Adobe have a common enemy in Apple. The Flash platform in Microsoft's hands might be an interesting competitive weapon against Apple."
Microsoft already has its own Silverlight media platform, but it has failed to gain prominence in the market.