Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Slack shares rise following report of possible Salesforce acquisition

Slack shares rise following report of possible Salesforce acquisition

Stewart Butterfield (C), co-founder and CEO of Slack, and Allen Shim (2nd l), CFO of Slack, ring the opening bell on the New York Stock Exchange (NYSE), June 20, 2019 in New York City.

Drew Angerer | Getty Images

Shares of Slack rose more than 24% on Wednesday after a Wall Street Journal report that Salesforce was in talks to buy the company.

Salesforce shares fell about 4% compared to the news.

The deal is likely to value Slack at more than its market value, before the report, of $ 1

7 billion. According to the report.

Salesforce has been in an acquisition process and has leveraged its growth in market coverage in recent years to buy growth. It acquired MuleSoft for $ 6.5 billion. In 2018, which is the company’s biggest deal ever at the time, to help connect cloud applications. The following year, it spent more than twice as much on Tableau, acquiring the data visualization company for $ 15.3 billion. $. Slack would be one of the biggest software deals ever for the industry.

An agreement is not guaranteed and negotiations can get through, the Wall Street Journal reported.

Microsoft stocks competing with Slack through its Teams offering also dipped slightly on the report.

Microsoft is already competing with Salesforce in customer tracking software. Microsoft has reportedly considered buying Salesforce, but no deal was reached. Later, Microsoft launched the Teams communication app.

“Our main competitor at the moment is Microsoft Corporation,” Slack said as it sought to become a public company in 2019. Microsoft has a large customer base that it has been able to convert into Teams, and Salesforce was able to give Slack a similar advantage.

Salesforce and Slack spokespersons were not immediately available for comment.

This is a story that is evolving. Come back for updates.

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