Adobe to acquire Omniture for $1.8 billion: doesn't make sense to me
Adobe paying $1.8 billion in cash for Omniture has a very, very high chance of being one of the worst Internet acquisitions ever. Pricey (5x sales/1.73 PEG/10x gross profit/26x operating cash flow for a $300 million business), in cash (almost 80 % of Adobe's cash), few synergies, fighting customer economics (only makes sense for e-commerce and maybe brand marketers, not for advertising-driven publishers) and fighting Google and other 'free' analytics providers that have strong incentives to subsidize analytics (a.k.a. pricing pressure is likely to increase).
Adobe could have spent far less cash and been far more customer-oriented by investing in better technical integrations with different analytics solutions rather than acquiring the high-end provider that a lot of Adobe customers don't use. Congratulations to Omniture, Adobe shareholders should beware.