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