Slack Shares Spike 25% On Report Of Salesforce Acquisition Talks


Shares of Slack Technologies soared 25% to $39 per share on Wednesday following a report from Dow Jones that corporate software behemoth Salesforce has held talks to buy the popular workplace chat app. 

Key Facts

Dow Jones noted that while there’s no guarantee that a deal will happen, any acquisition would likely value Slack above its $17 billion market cap, which surged to $20 billion along with shares of the company following Wednesday’s news.

The acquisition—if it happens—would also be Salesforce’s largest ever, Dow Jones noted.

Salesforce bought tech integration platform MuleSoft for $6.5 billion in 2018 and data visualization company Tableau for $15.3 billion last year.

Shares of Salesforce dropped 3.3% on Wednesday’s news.

Crucial Quote

“This deal would be a major shot across the bow at Microsoft,” Wedbush Securities’ Daniel Ives and Strecker Backe wrote Wednesday, “with the company’s Teams offering a direct messaging competitor against Slack that has been a clear hurdle to growth and now would be a two horse race between Microsoft and Salesforce.”

Key Background

Slack held its highly anticipated direct listing on the New York Stock Exchange in June 2019, but by September shares had plunged 33% in the wake of tepid financial results and investor worries about competition from Microsoft. The stock recovered over the summer to reach an all-time-high of $40 per share as stay-at-home pandemic stocks like Zoom, Peloton, and Netflix surged.

Further Reading

Slack Stock Has Plunged 33%. Here’s What Happened. (Forbes)

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