Slack in Talks to Be Acquired by Salesforce: Report

The two companies have begun merger discussions for an agreement that could see Slack valued at more than the present market capitalisation.

By Agence France-Presse | Updated: 26 November 2020 10:02 IST

Slack in Talks to Be Acquired by Salesforce: Report

Salesforce acquired data software company MuleSoft in 2018 for $6.5 million (roughly Rs. 47 crores)

Highlights

Slack makes it easier for teams of employees to collaborate online
The move could set up Salesforce as a competitor for Microsoft
It could pave the way for more mergers in the cloud tech sector

US software firm Salesforce plans to buy corporate messaging platform Slack, the Wall Street Journal reported Wednesday, leading to a jump in stock prices for the young company.

Slack, which has enjoyed increased popularity since the beginning of the coronavirus pandemic, saw its shares surge 32 percent.

Trade was temporarily suspended but prices were still up nearly 24 percent around 1:00pm (11:30pm IST).

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

Salesforce, which specialises in technology that allows businesses to communicate with clients, fell nearly three percent, however.

The two companies have begun merger discussions for an agreement that could see Slack valued at more than the present market capitalisation of $17 billion (roughly Rs. 1,25,500 crores), the Journal reported.

"If Salesforce does head down this path it would set off a chain reaction for more cloud software deals in 2021," Wedbush analyst Dan Ives said.

Salesforce Buying Tableau Software in $15.7-Billion All-Stock Deal

It could pave the way for more mergers in the cloud tech sector, Ives said, especially since the move could set up Salesforce as a competitor for Microsoft, which owns Slack rival Teams.

Salesforce acquired data software company MuleSoft in 2018 for around $6.5 million (roughly Rs. 47 crores) and data visualisation tool Tableau for $15.7 billion (roughly Rs.1,15,900 crores) in 2019.

Slack, which purports to make it easier for teams of employees to collaborate online, has boomed as remote working has gained a cultural foothold during the COVID-19 pandemic.

In its latest quarterly report, the company declared a 49 percent increase in revenue for May, June and July, to $216 million (roughly Rs. 1,600 crores). The platform counts 1,30,000 paying clients.

iPhone 12 Pro Series Is Amazing, but Why Is It So Expensive in India? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.