Is Microsoft in talks to buy Adobe?

Share in Adobe rose 17% yesterday based on a report from The New York Times that Microsoft Chief Executive Steve Ballmer recently met in secret with Adobe CEO Shantanu Narayen.

The pair were said to have discussed Apple dominance in mobile phones and considered several options to counteract that, including Microsoft acquiring Adobe.

The newspaper cites employees and consultants involved in the discussions as its source.

"It's certainly possible," Morningstar Analyst Toan Tran told Reuters. "It may be a case of 'the enemy of my enemy is my friend' and both Microsoft and Adobe have a common enemy in Apple. The Flash platform in Microsoft's hands might be an interesting competitive weapon against Apple."