Adobe soars on news of Microsoft interest

NEW YORK – Shares of Adobe soared in heavy trading Thursday on a report that Microsoft CEO Steve Ballmer discussed a possible buyout of the company.

A report posted in the “Bits” blog of the New York Times said Ballmer recently met with Adobe CEO Shantanu Narayen to talk about Apple’s control of the cell phone market and how Microsoft and Adobe could work together to fend off the iPhone maker.

It was in this context that a possible buyout of Adobe by Microsoft Corp. came up, according to the Times. Microsoft had no comment.

Adobe Systems Inc. makes software such as Photoshop and the Flash technology used for Web videos and games.

It’s also not clear how an acquisition would benefit Microsoft’s mobile business. The first smart phones running Microsoft’s Windows Phone 7 operating system, which are set to launch Monday, won’t have Flash.

Adobe ended the session up nearly 12 percent at $28.69 per share.