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Salesforce In Talks To Acquire Slack

Salesforce is in talks to acquire Slack, and the deal could be announced soon next week, according to a source familiar with the matter.

Slack shares closed almost 38% higher on Wednesday after the Wall Street Journal reported for the first time that Saleforce was holding talks to buy the company. Saleforce, whose stock closed 5% on Wednesday, is scheduled to release its third quarter salary next week.

Slack’s Stock Reaction

It is not clear how much the agreement would cost. Slack’s market cap has reached more than $ 20 billion following the initial WSJ report.

Salesforce has been making a profit, taking advantage of its market growth in recent years to buy growing companies. It acquired MuleSoft for $ 6.5 billion in 2018, the largest company contract ever in existence at the time, to help connect cloud applications. The following year he spent twice as much as in Tableau, acquiring a data vision company with $ 15.3 billion.

Potentially One Of The Biggest Deals

Salesforce.com, inc. is an American cloud-based software company headquartered in San Francisco, California. It provides customer relationship management service and also sells a complementary suite of enterprise applications focused on customer service, marketing automation, analytics, and application development.

Slack could be one of the biggest software deals ever in the industry. It could be between IBM’s $ 34 billion Red Hat acquisition in 2019, Microsoft’s $ 27 billion purchase of LinkedIn in 2016 and WhatsApp’s $ 19 billion purchase in 2014.

“This is going to be a game changer for Benioff & Co to move forward with building its own product partnership engine as the tracks are used by clouds throughout the business,” Dan Ives of Wedbush Securities, told Salesforce CEO Marc Benioff.

The Competitors

Microsoft shares, which compete with Slack in the provision of teams, also sank slightly in the report.

Microsoft is already competing with Salesforce for customer tracking software. In 2016 TechCrunch reported that Microsoft was looking to buy Black for up to $ 8 billion, but no deal has been reached. Later that year Microsoft launched a group communication app.

“Our current competitor is Microsoft Corporation,” Slack said in a bid to become a public company in 2019. Microsoft has a large customer base that has been able to transform into a Group, and Salesforce can offer Black the same benefits.

Slack last said in October 2019 that it has more than 12 million active users every day. In October Microsoft said the Groups employed 115 million active users daily.

Salesforce and Slack spokespersons could not be reached for comment.

Synopsis

Salesforce is in talks to acquire Slack, and the deal could be announced soon next week, according to a source familiar with the matter.

Slack’s shares fell on Wednesday after the Wall Street Journal reported for the first time that Saleforce had held talks to buy the company.

The acquisition will be the largest for saleforce to date if companies go through it.

Shaheer Ansari

Shaheer is passionate about living a life seeking un-ending knowledge, philomath, as you may think of him. He's a student of Finance and a keen observer of Business and Indian-Political scenario who takes pleasure to pen down his views and opinions on the same. As his guiding mantra to life, ‘Come what may , life goes on’ helps.

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