Salesforce is in talks to buy Slack, deal could be announced next week

guest · Nov 25, 2020

Salesforce is in talks to buy Slack, deal could be announced next week
The acquisition would be Salesforce’s largest to date if a deal goes through
November 25, 2020
https://www.cnbc.com/2020/11/25/sla...eport-of-possible-salesforce-acquisition.html

Salesforce is in talks to acquire Slack, and a deal could be announced as soon as next week, according to a person familiar with the matter.

Shares of Slack rose as much as 32% Wednesday after the Wall Street Journal first reported that Salesforce held talks to buy the company. Salesforce stock dropped around 4% on the news. The company is also scheduled to release its third-quarter earnings next week on Dec. 1.
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It’s unclear how much the deal would be worth, but Slack’s market cap ballooned to more than $20 billion following the WSJ’s original report.
Slack would be one of the biggest software deals ever for the industry.

“This would be a game changer move for Benioff & Co. to further build out its collaboration engine and product footprint as cloud spending ramps across the enterprise,” Wedbush Securities’ Dan Ives told CNBC, referring to Salesforce CEO Marc Benioff.
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Microsoft already competes with Salesforce in software for tracking customers. In 2016 TechCrunch reported that Microsoft looked at buying Slack for up to $8 billion, but no deal came about. Later that year Microsoft introduced the Teams communication app.

“Our primary competitor is currently Microsoft Corporation,” Slack said when it sought to become a public company in 2019. Microsoft has a large customer base it has been able to convert to Teams, and Salesforce could give Slack a similar benefit.
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guest · Nov 28, 2020

Salesforce buying Slack would mark the first big software deal in a boom year for the cloud
November 28, 2020
https://www.cnbc.com/2020/11/28/sal...first-big-deal-in-boom-year-for-software.html

The tech industry has seen some hefty deals announced during the 2020 pandemic, including several in the tens of billions of dollars. But not in software.

That could change soon. Salesforce, which has been one of tech’s biggest acquirers in recent years, has been in talks to buy Slack, CNBC and other media outlets reported on Wednesday
It would be one of the biggest software acquisitions ever, and potentially the largest since IBM bought Red Hat for $34 billion, a purchase announced in 2018.
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Like other software companies, Slack has benefited from the work-from-home boom. However, the competitive environment has simultaneously become much more intense, particularly from Microsoft Teams, leading to investor concern about Slack’s growth prospects and margins.
Microsoft includes Teams with subscriptions to the Office 365 suite and has heavily promoted the chat and video service this year.

“With Salesforce’s distribution and selling capabilities, Slack would instantly be propelled into C-level executive discussions across industries,” RBC analyst Alex Zukin, who has the equivalent of a buy rating on Salesforce and Slack, wrote in a note on Wednesday.
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Based on Slack’s current market cap, it would be Salesforce’s largest acquisition, exceeding last year’s $14.8 billion deal to buy data visualization software company Tableau.
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guest · Nov 30, 2020

Salesforce deal to buy Slack expected to be announced Tuesday after market close
November 30, 2020
https://www.cnbc.com/2020/11/30/salesforce-deal-to-buy-slack-expected-to-be-announced-tomorrow.html

Salesforce’s deal to buy Slack is expected to be announced Tuesday after markets close, sources told CNBC’s David Faber.

The deal is expected to be about half cash and half stock, the sources said, and will price Slack at a premium to its current price. Salesforce is set to report quarterly earnings on Tuesday. Slack’s market cap was more than $24 billion as of Monday morning.
Shares of Slack rose about 8% Monday on the news. Salesforce shares fell about 1.5%.
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guest · Dec 1, 2020

Salesforce buys Slack for $27.7 billion
The deal is Salesforce’s biggest acquisition to date
December 1, 2020
https://www.engadget.com/salesforce-buys-slack-210947704.html

Messaging app Slack will be acquired by Salesforce for $27.7 billion in what will be the software company’s biggest acquisition to date.

If you’re unfamiliar, Salesforce — founded by Marc Benioff — provides sales management software and other cloud services to businesses.
Slack, meanwhile, has become shorthand for a real-time messaging service that has been embraced by companies who have no idea what IRC is.

Its business has, however, suffered a little through 2020, in part because Microsoft’s Teams has been adapted to offer a competing product.
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TechCrunch: Salesforce buys Slack in a $27.7B megadeal

Salesforce, the CRM powerhouse that recently surpassed $20 billion in annual revenue, announced today it is wading deeper into enterprise social by acquiring Slack in a $27.7 billion megadeal. Rumors of a pending deal surfaced last week, causing Slack’s stock price to spike.
Salesforce co-founder and CEO Marc Benioff didn’t mince words on his latest purchase.

“This is a match made in heaven. Together, Salesforce and Slack will shape the future of enterprise software and transform the way everyone works in the all-digital, work-from-anywhere world,” Benioff said in a statement
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Salesforce: Salesforce Signs Definitive Agreement to Acquire Slack

Combination of #1 CRM platform with the most innovative enterprise communications platform will create the operating system for the new way to work, enabling companies to grow and succeed in the all-digital world
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guest · Dec 1, 2020

Salesforce beats growth expectations as investors digest the Slack acquisition
December 1, 2020
https://techcrunch.com/2020/12/01/s...ns-as-investors-digest-the-slack-acquisition/

Today after the bell, Salesforce reported its third-quarter earnings for its fiscal 2021, a period that ended October 31, 2020. The CRM giant reported top-line revenue of $5.42 billion, up 20% from the year-ago period. Salesforce also had net income of $1.08 billion and earnings per share of $1.15.

Analysts had expected the company to earn $0.75 per share off revenues of $5.25 billion, according to Yahoo Finance.
Holders of Slack will be rewarded for their patience. Now it’s up to Salesforce leadership to prove that the huge buy will help boost the company’s growth.
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But Salesforce expects to grow 21% in all of its fiscal 2022. How does it intend to accelerate? Its projections include Slack:

Full Year FY22 revenue guidance includes contributions from Slack Technologies, Inc. of approximately $600 million, net of purchase accounting, and assumes a closing date in late Q2 and Acumen Solutions, Inc. of approximately $150 million, net of purchase accounting, and assumes a closing date within Q2.
So, Salesforce investors, after two anticipated quarters of 17% growth coming up, your company will accelerate up to 21% growth for the next fiscal year. Is that worth $27.7 billion?
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guest · Jul 21, 2021

Now Salesforce officially owns Slack
The $27.7 billion acquisition has closed
July 21, 2021
https://www.theverge.com/2021/7/21/22587666/slack-acquisition-salesforce-closed-messaging-cloud

Cloud computing giant Salesforce has completed its acquisition of Slack, a $27.7 billion dollar deal that adds the messaging app to its suite of enterprise software without immediately changing Slack’s functionality, branding, or leadership.

Salesforce CEO Marc Benioff said in a statement that “Together we’ll define the future of enterprise software, creating the digital HQ that enables every organization to deliver customer and employee success from anywhere.”
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To answer the question on what’s next, on August 17th, Butterfield and Salesforce COO Bret Taylor are planning an event “to share more about how the two companies are creating a powerful platform for the digital-first, work anywhere world.”
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Salesforce: Salesforce Completes Acquisition of Slack

Together, Salesforce and Slack are creating the digital HQ for success from anywhere

SAN FRANCISCO, July 21, 2021 /PRNewswire/ -- Salesforce (NYSE: CRM), the global leader in CRM, today announced it has completed its acquisition of Slack Technologies, Inc.
"We couldn't be more excited to have Slack as part of the Salesforce family, combining the #1 CRM and the trailblazing digital platform for the work anywhere world," said Marc Benioff, Chair and CEO of Salesforce.
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guest · Aug 17, 2021

Salesforce starts Slack integrations with Slack-First Customer 360 with more on deck
August 17, 2021
https://www.zdnet.com/article/sales...h-slack-first-customer-360-with-more-on-deck/

Salesforce launched its first integrations with newly acquired Slack across its clouds and Customer 360. The effort is aimed at hybrid work and the "digital HQ" as well as resolving customer issues and closing sales faster.

Specifically, Salesforce is launching Slack-First Customer 360, which aims to allow enterprises to collaborate and streamline workflows with one view of the customer. Salesforce is also using Slack to automate routine business processes. The deal was officially announced on December 1, ending speculation the CRM giant was looking to expand its footprint more into collaboration and workflows.
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Salesforce President and COO Bret Taylor and Slack CEO Stewart Butterfield will outline the integrations at an event at 1 pm ET. Rob Seaman, senior vice president, Slack@Salesforce, said using Slack as an engagement surface for Salesforce is about revamping workflows and processes for what it calls digital HQs. "This is about connecting humans as much as systems," said Seaman. "Traditionally people have been bogged down by multiple systems."
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