Adobe (NASDAQ:ADBE) announced that it acquired certain assets from Iridas, a video enhancement software maker. [1] The technology includes digital color grading and video enhancing tools as well as stereoscopic technology. Adobe offers video editing and production software as part of the Production Premium Creative Suite, and the company competes primarily with Microsoft(NASDAQ:MSFT), Apple (NASDAQ:AAPL), Quark and Corel in this market.
The Creative Software division accounts for more than 50% of the $35 Trefis price estimate for Adobe. It includes image, video and animation software like Photoshop, Dreamweaver, Flash, Premiere Pro, After Effects etc. Our current Trefis price estimate implies 35% upside to the current market price.
Tech from Iridas will Improve Adobe’s Video Offering
The technology acquired from Iridas will primarily be used to improve Adobe’s Premiere Pro and After Effects software and add additional features like enhanced color grading which is used to change color tones in a video, HDR (high dynamic range) capabilities and RAW video processing. It could potentially boost Adobe’s share in the creative software market.
Adobe currently has around 42% market share, which we expect to remain roughly flat through the forecast period. If these new features can help Adobe capture even a couple of percentage points of additional market share, that could mean a significant upside from the current market price.
Check out our complete analysis for Adobe.
Notes:- Adobe acquires Iridas Technology, Press Release [↩]
