Adobe, Google Partner Up

Adobe Systems (ADBE Quote) will distribute Google's (GOOG Quote) search toolbar as part of a deal the two companies announced on Wednesday.

Adobe will include the search tool, which works inside a Web browser, with downloads of its popular Shockwave multimedia player and other products. Customers who install the Shockwave player will have the choice to install Google's toolbar as well.

The companies did not disclose how much Google will pay Adobe to distribute the software or the exact length of the multiyear agreement. Adobe has already incorporated revenue from the deal into its outlook for fiscal 2006, which the company updated last week.

Shockwave, one of the programs that Adobe got as part of its acquisition of Macromedia last year, is widely used on the Web for advertisements and games. According to Adobe, Shockwave is installed on 55% of "Internet-enabled" desktop computers.

Google is in a fierce battle with Yahoo! (YHOO Quote) and Microsoft (MSFT Quote) to maintain its position as the top online search engine. Last month, the company announced a deal with Dell (DELL Quote) to place its desktop search application on Dell PCs.

Shares of Adobe rose 44 cents, or about 1.5%, to $30.32 in after-hours trading following the announcement, while Google shares were up 39 cents, or less than 1%, to $402.52.