Like Nibaq just posted, Adobe just acquired Macromedia. What does this mean to us? Well first lets see what major software both companies have.

Adobe
Acrobat, Photoshop, Elements, Illustrator, InDesign, GoLive, Premier, After Effects

Macromedia
Flash, Dreamweaver, FreeHand, Director, Fireworks

The biggest and most controversial problem is Illustrator and Freehand. Both softwares are currently being used although in the past few years FreeHand has lost a considerable share of the market, they still have a cult following. But, between Illustrator and Freehand, there is no question, Freehand will die. Its been dying slowly anyway but I am sure the fans will cry murder. Fireworks which conflicts with Photoshop and Elements will also die out, Photoshop has a much larger market share and a much stronger brand. GoLive and Dreamweaver, GoLive is out for sure. Adobe has been trying to play catchup with Dreamweaver for a very long time and this way they can just trash GoLive and pickup the much more popular Dreamweaver. Director will be a very nice addition to the Adobe Suite and I hope they manage to integrate it nicely with the other Adobe software, which I am sure they will. Finally owning both Flash and Acrobat I think is a very strong package, PDF is used a lot in the print world while Flash is used alot in the digital one. Owning both means that they will have a very strong position in both medias. All they need now is to buyout Quark and we will have another Microsoft-like company to deal with.