Slack Stock Rips Higher On Report Of Talks With Salesforce
Michelle Jones | Nov 25, 2020 06:38PM ET
Shares of Slack Technologies (NYSE:WORK) have skyrocketed after a report that Salesforce (NYSE:CRM) is negotiating to buy the company. Citing sources familiar with the talks, value Slack at more than its previous $17 billion market capitalization.
After the WSJ's report, shares of Slack surged more than 20%, carrying the company's market cap up past $20 billion. Meanwhile, shares of Salesforce slumped by almost 3% on the news about Slack. Microsoft (NASDAQ:MSFT) shares also dipped slightly on the possibility of a combination of the two companies. Salesforce and Slack both compete with Microsoft, which previously considered acquiring Salesforce, although no agreement was reached.
h2 Details On Talks Between Salesforce And Slack/h2If Salesforce reaches a deal to buy Slack Technologies, it would signal an even more aggressive push into office communication for Salesforce. The company already has two communication tools, which are Quip and Chatter. They can be used together with Salesforce's customer management tools.
The Wall Street Journal said the talks are still in the early stages, and an agreement is not guaranteed because the negotiations could fall through. Neither of the two companies was talking to the press about the report.
According to CNBC . The company has been on an acquisition spree in recent years, snapping up growing companies by taking advantage of its own growing market cap.
Salesforce paid $6.5 billion to acquire MuleSoft in 2018, which was its biggest deal at the time. Then, last year, the company paid more than double that amount to acquire Tableau Software for $15.3 billion. This year, Salesforce has made some smaller acquisitions, including Vlocity for $1.3 billion in February and The CMO Club for an undisclosed sum in March.
If Salesforce does finalize an agreement with Slack, it would be one of the largest software deals ever. It would rank among IBM (NYSE:IBM)'s acquisition of Red Hat for $34 billion last year, Microsoft's purchase of LinkedIn (NYSE:LNKD) for $27 billion in 2016, and Facebook (NASDAQ:FB)'s acquisition of WhatsApp for $19 billion in 2014.
This post appeared first on ValueWalk .
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.