Last month, Adobe declared its plans to acquire cloud-based video collaboration platform Frame.io. The deal cost Adobe $1.275 billion, and its stock price was largely unaffected by the news. Frame.io, which boasts a million users across media and entertainment companies, agencies, and global brands, streamlines video production by centralizing media assets and enabling editors and other project stakeholders to collaborate using cloud-first workflows. The acquisition puts Adobe in a strong position to enhance the video production components of its Creative Cloud suite, incorporating Frame.io’s review and approval functionality to enable greater cooperative video editing capabilities.
The Creative Cloud provides Adobe with the lion’s share of its annual revenue, accounting for 60% in the most recent quarter alone. The software giant previously reinforced the Creative Cloud with acquisitions like the stock-content marketplace Fotolia and social media site Behance. Frame already counts Activision, Google, LinkedIn, Netflix, Turner, and Vice Media as customers, and fusing with Adobe will provide a significant growth opportunity for the two companies. Upon the deal’s closing, Frame.io Co-founders John Traver and Chief Executive Officer Emory Wells will join Adobe, overseeing their team and reporting to Scott Belsky, Chief Product Officer and Executive Vice President of Creative Cloud.