Microsoft-Adobe talks related to Flash, not a takeover
Instead, those with knowledge of the meeting said that Ballmer and Narayen had met to discuss gaining support for Adobe's Flash on the new Windows Phone 7 OS. With Apple CEO Steve Jobs complaining that Flash is responsible for poor battery life, crashes and sluggish performance, Adobe now has a chance to draw a sharp line between those platforms that support its software, and those that don't. To that end, Narayen might now have added Windows Phone 7 and webOS to the "support" side of the equation.
While a Microsoft-Adobe deal seems unlikely, some analysts are touting Google as a possible acquirer of the software company. The Mountain View based firm has supported Flash on Android, Google T.V. and on its Chrome browser.