Salesforce approaches Slack with acquisition offer - Software

Lawrence Kim
November 26, 2020

According to WSJ's latest report, Salesforce is in talks to buy Slack. Slack is now valued at $17 billion. So, Salesforce may need to pay more than $20 billion for this acquisition.

With the Slack acquisition, Salesforce will be entering the communication and collaboration market, and it will directly compete with Microsoft Teams.

Slack Technologies, which launched a decade ago as a gaming company called Tiny Speck and soon pivoted to focus on its channel-based chat software, had a market valuation of just under $17 billion on Tuesday, as the Wall Street Journal reports.

Acquiring Slack, which has a market valuation of nearly $22 billion following reports of the talks, would be Salesforce's biggest deal ever, according to data compiled by Bloomberg. Salesforce had notably been in talks to acquire Twitter in 2016, a deal which Benioff ultimately walked away from because investors reportedly balked at the idea and the potential complications involved with owning the social media company. That title is now held by Salesforce's purchase of data company Tableau for $15.7 billion in June 2019.

"Smart move by Benioff", especially if he uses stock, said Anurag Rana, an analyst at Bloomberg Intelligence. In October 2019, the two companies announced the Salesforce for Slack app, which allows sales and services professionals to more easily access and share information from Salesforce applications in Slack. The stock has fluctuated this year as the pandemic's effect on businesses has spread to its customer base. The event for customers, partners and employees will be a showcase for the software maker's future products and strategy roadmap.

Other reports by Click Lancashire

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