Personally, I believe this is the most strategic combination in the history of software, and I cant wait to get going.. We, TechCrunch, are part of the Yahoo family of brands. Davidson, in a report last week. Slack will combine with Salesforce Customer 360, which connects all apps in the Salesforce suite, and Salesforce says it will completely change how users communicate and work with their clients. It has collaborative tools. 00:00. "Stewart [Slack CEO Stewart Butterfield] and his team have built one of the most beloved platforms in enterprise software history, with an incredible ecosystem around it, said Marc Benioff, Salesforce chairman and CEO. This is our ultimate vision.. Salesforce acquired Quip in 2016 but hasn't picked up much momentum against Microsoft and Google. Stewart Butterfield, Slacks chief executive, at the companys headquarters in 2017. Slack, which was founded in 2010 by Mr. Butterfield, grew quickly and previously attracted and rejected takeover offers from the likes of Google, Microsoft and Amazon. Teams now has more than 115 million users while Slack has a fraction of that, despite it having the edge in the minds of most in terms of user interface. With last year's purchase of Tableau, Salesforce jumped into the data visualization market, taking on Microsoft's Power BI. Get this delivered to your inbox, and more info about our products and services. The opportunity we see together is massive, Slack co-founder and CEO Stewart Butterfield said. On Tuesday, Mr. Butterfield tweeted that Slack would remain an independent and open platform and said its mission had not changed. "Microsoft Teams has been able to capitalize on the opportunity presented by the pandemic better than Slack, in our view, and this rapid growth in adoption has hurt Slack.". Salesforce (CRM) is getting some big work done before year-end. Its unclear when Slack will turn a profit, which is something that has weighed on the minds of Wall Street in recent months. Salesforce has agreed to acquire Slack for $27.7 billion. Salesforce's deal to buy Slack is expected to be announced Tuesday after markets close, sources told CNBC's David Faber. Salesforce is the dominant player in customer relationship management software, where Microsoft is a distant challenger. Join us as we chat about how evangelizing Salesforce and being an advocate for expanding the use of Salesforce within your company can help propel your career. 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. Slack has said it has about 12 million daily active users, and Salesforce on Tuesday said Slack now has more than 142,000 paying customers. NEW YORK, NEW YORK - OCTOBER 17: Former U.S. President Bill Clinton (L) and CEO of Salesforce.com and TIME USA owner, Marc Benioff, pose at the TIME 100 Health Summit at Pier 17 on October 17, 2019 in New York City. All Rights Reserved. Shareholders will get $26.79 in cash and 0.0776 shares of Salesforce stock in exchange for each share of Slack, according to Tuesdays deal announcement. Ives, who recommends buying Salesforce shares, said Teams "has been a clear hurdle to growth" for Slack and that the market will now be "a two horse race between Microsoft and Salesforce.". According to the Wall Street Journal, that's . In July, Atlassian, which sells tools for developers and project management, said it would buy the enterprise services business Mindville for an undisclosed amount. The only real question would be how much Salesforce was willing to spend. I just dont see it.. "They say time is the one thing you can't buy, but in fact, time is the . On December 1, Salesforce announced it would pay $27.7 billion mostly in cash to acquire Slack. Salesforce Is Buying Slack for $27.7 Billion. The tie-up between the two is hardly a surprise. Salesforce ( CRM) is getting some big work done before year-end. In one of the biggest tech mergers, cloud computing giant Salesforce has acquired workplace chat app Slack for $27.7 billion. If Salesforces revenues for the year grow 22%, it will end 2020 with about $20.8 billion in revenue making Slack a mere 4.2% of the total. Ron reports that Slack CEO Stewart Butterfield, who joined Salesforce when the company acquired Slack in 2020, . Salesforce could help easily scale up Slack to more high-paying corporate customers in a major challenge to the momentum at Teams. In July, Slack filed a complaint against Microsoft with the European Commission, claiming Microsoft had unfairly bundled Teams with its suite of Microsoft Office work products. Much of the volatility can be attributed to Microsoft. Salesforce to Buy Software Maker Slack for $27.7 Billion (Bloomberg) -- Salesforce.com Inc. agreed to buy Slack Technologies Inc. for $27.7 billion in cash and stock, giving the corporate. Salesforce (NYSE: CRM) has confirmed the rumors that started swirling last week. Under the terms of the agreement, Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share, representing an enterprise value of approximately $27.7 billion based on the closing price of Salesforce's common stock on 30th November 2020. Software giant Salesforce officially closed on its $27.7 billion record acquisition of messaging app Slack Technologies on Wednesday, as the company bets big on a digital work-from-anywhere future."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," Salesforce CEO Marc Benioff . SaleForce might have made an offer in the $35 range, and after much negotiation SalesForce and Slack's board of directors agreed on the price of around $44 per share. The move caps an acquisitive streak by Salesforce and ends Slacks run as an independent publicly traded company. Let's take a look at the largest Salesforce acquisitions of all time. Salesforce to Acquire Slack for $27.7 Billion, https://www.nytimes.com/2020/12/01/technology/salesforce-slack-deal.html. Dec. 1, 2020 1:48 PM PT. Combining Slack with Salesforce Customer 360 could be transformative for customers and the industry. Adobe said last month that it planned to acquire the work force management software company Workfront for $1.5 billion. In September, Mark Hawkins, Salesforces chief financial officer, told analysts that the company would continue to be opportunistic with respect to deals. Teams, Microsofts collaboration product, reported 115 million daily users in October, up 50 percent from April. Im thrilled to welcome Slack to the Salesforce Ohana once the transaction closes., Salesforce started the cloud revolution, and two decades later, we are still tapping into all the possibilities it offers to transform the way we work. IBM has built their entire Customer 360 on Salesforce and now has more than 530,000 customers, 380,000 employees and 50,000 partners using our platform. Buying Slack would help Salesforces customers make the digital transformation, he said. That comes to about $45.86 a share. Salesforce, which got its start by developing cloud-based software for sales reps, has dramatically expanded its reach in recent years and, along the way, become one of the most valuable software companies in the world, passing Oracle, SAP and IBM as well as other legacy tech companies such as Cisco and Intel. That disparity helps to explain why Slack sold itself this week to Salesforce. Unlike so many cloud companies, namely Zoom and RingCentral, Slack has not seen a COVID-induced revenue boost this year and I'm sure that has contributed to its agreeing to be acquired. Slack has not provided an update on the 12 million daily users it reported a year ago. Find out more about how we use your information in our Privacy Policy and Cookie Policy and change your choices at any time by visiting Your Privacy Controls. Taylor was credited as the architect of Salesforce's 2020 deal to buy Slack for $27.7 billion, Salesforce's biggest acquisition ever." - WSJ #slack #salesforce https://hubs.ly/Q01v1B3d0 Slack has faced competitive pressure from Microsoft. In February, Salesforce paid $1.3 billion for Vlocity, a mobile software provider. Salesforce CEO Marc Benioff says the Slack Connect digital communications application will integrate with the Salesforce suite of cloud-based ecommerce, marketing, sales, service and analytics software to help companies better serve their customers. Business software pioneer Salesforce.com is buying work-chatting service Slack for $27.7bn in a deal aimed at giving the two companies a better shot at competing against longtime industry. Slacks revenue will be a tiny drop in the bucket for Salesforce. SalesForce will buy Slack for $27.7 billion dollars. What Adding Slack To Salesforce Means At nearly twice the price of the 2019 Tableau acquisition, the $27.7 billion price tag on Slack is no small purchase. Arvind Krishna is a close friend of mine and he believes that bringing Salesforce and Slack together is key for IBM to become even more connected, more productive and more innovative. So folks are Keeping Salesforce of course, they are. Salesforce said the Slack purchase comes to an enterprise value of $27.7 billion, which takes into account shares outstanding along with debt and cash. Slack listed its shares publicly on the NYSE this week with a reference price of $26, which would put it at a value of around $15.7 billion. Salesforce has had its own work collaboration product, called Chatter, since 2010. Earlier this week, Salesforce acquired Slack for $27.7 billion. It began as tool for volunteer users, generating its user growth through use and network externalities, rather than software sales machinery. Salesforce hasn't stopped growing, but importantly, its new bookings are at a low point. said Tuesday after market close that it would acquire, Coffee Consumption Seen Rising Only Modestly in Next Few Years, Dollar Up, Stocks Down as Traders Eye Rate Paths: Markets Wrap, WRAPUP 1-Ukraine steps up diplomacy amid fighting, power outages, UPDATE 1-Abu Dhabi Investment Authority to invest in India's Lenskart - ET, US-Africa Set to Face-Off on Duty-Free Trade Pact at Summit. Salesforce is paying $27.7 billion for Slack, according to the press release. 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.. The company has its headquarters at Salesforce Tower in San Francisco. Indeed Microsoft has done a better job at turning WFH into a tailwind by adding videoconferencing to Teams and heavily promoting the collaboration service, according to the Journal. While Salesforce reported 29% revenue growth in the second quarter, its 2020 forecast in the 21% to 22% range would represent the companys slowest rate of expansion since 2010, according to CNBC. But the slowdown has only fed angst on the Street that Microsoft (MSFT) Teams ascent is weighing on Slacks growth potential. Through a combination of cash and stock, Salesforce is purchasing Slack for $26.79 a share and .0776 shares of Salesforce, according to a statement. Online catch Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, and reddit. Microsoft has offered the software alongside Office since Teams was released in 2017. With tough competition. Salesforce is also competing with Adobe, and the latter's pending acquisition of Workfront has similarities to the potential Slack deal. Salesforce said it planned to incorporate Slacks communication software into every aspect of its cloud software offerings. To this point, we believe the company will have significant difficulty further penetrating the core enterprise market and Microsoft installed base given the significant competitive offering from Microsoft's Teams product that could slow growth going forward quicker than the Street is anticipating, despite the COVID driven tailwinds, warned Wedbush tech analyst Dan Ives. The deal is expected to be about half cash and half stock, the. 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. It is, as the mighty Anshu Sharma says, the Bloomberg terminal of developers, sales people and marketers. Salesforce, which provides marketing and sales software, among other products, has been highly acquisitive as it looks to grow. The CRM giant said Tuesday after market close that it would acquire Slack (WORK) in a cash and stock deal valuing the workplace communications service at $27.7 billion. The stock, which opened at $38.50, has been on a roller coaster since, trading near $17 in March of this year, before climbing back close to $40 in June and then dropping back below $25 in mid-November. The biggest was IBM's $34 billion purchase of Red Hat in 2018, followed by Microsoft's $27 billion acquisition of LinkedIn in 2016. It's a mission-critical app, and one that in the enterprise is really a 10-year commitment. Massive respect to Stewart Butterfield, and thanks for making liberal arts degrees cool again. Slack is definitely an excellent enterprise software platform. "This deal will be a major shot across the bow at Microsoft," wrote Dan Ives, an analyst at Wedbush, in a report on Monday. Slack Acquisition Date: Dec 1, 2020 Purchase Price: $27.7B Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. On December 1, Salesforce announced it would pay $27.7 billion mostly in cash to acquire Slack. So, why did Salesforce acquire Slack and more importantly, why did Slack decide to sell to Salesforce? Without Slack, there would have been no Teams. For Marc Benioff, chief . Selling your company for 27 Billion is a win in the books I read. Salesforce's premium for Slack is in the same range (50-55%), though because it includes both cash and stock, the value of the offer fluctuates in sync with the value of Salesforce's own. We've been there. The total enterprise value of the proposed acquisition has been pegged at $27.7 billion. Mr. Taylor said the pandemic had fundamentally shifted consumer behavior and the way people work. Salesforce Slack will continue to operate under the Slack brand, driving forward a continued focus on its mission, customers, and community. The Salesforce deal for Slack shows how competitive the software market has become, said Logan Purk, a senior analyst with financial advisory firm Edward Jones. Slack's failure to update this figure is taken widely as a sign of weak growth. On Tuesday, Slack reported that revenue grew 39 percent in the three months ending with October. Marc Benioff, the chief executive of Salesforce, was effusive about the combination, calling it a match made in heaven. In a conference call, he said that Stewart Butterfield, Slacks chief executive, and Bret Taylor, Salesforces president, had presented him with the deal. + Follow. Watch Yahoo Finances live programming on Verizon FIOS channel 604, Apple TV, Amazon Fire TV, Roku, Samsung TV, Pluto TV, and YouTube. (Photo by Craig Barritt/Getty Images for TIME 100 Health Summit ). The company announced on Tuesday that it's buying chat software developer Slack for over $27 billion. Over the past week or so, at least six top executives from Salesforce and its subsidiaries announced plans to leave, Ashley Stewart, chief tech correspondent, writes. Slack has a market value of about $17 billion. Reported EPS is $1.4, expectations were $1.22. By acquiring Slack, a business chat service with over 130,000 paid customers, Salesforce is bolstering its portfolio of enterprise applications and filling out its broader software suite as it seeks new areas of growth. The company spent $15.3 billion on data visualization company Tableau in 2019 and, a year earlier, shelled out $6.5 billion to acquire MuleSoft, whose back-end software connects data stored in disparate places. Tiny Speck's game, Glitch, was a failure. That alone would bring Slack likely to the doorstep of a sustainably profitable business. Under the terms of the agreement, Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share, representing an enterprise value of approximately $27.7 billion based on the closing price of Salesforce's common stock on 30th November 2020. WATCH: Would Salesforce buying Slack be offensive or defensive? Marc Benioff, the chief executive of Salesforce. Google, Oracle, Amazon, and Microsoft awarded $9 billion Pentagon cloud deals As Apple's App Store expands price points options, RevenueCat rolls out A/B price testing tools It caught many off guard as the reasons for the big spend are still being digested. Last year, it bought Tableau, a data analytics provider, for $15.3 billion; in 2018, it bought MuleSoft, a data integration company, for $6.5 billion; and in 2016, it bought Demandware, an e-commerce software maker, for $2.8 billion. This matters for CRM stock as the cloud company . Meantime, despite impressive growth this year in paid customers amidst the pandemic notably among large corporations and a host of new innovations to retain existing clients, Slack still expects to post a net loss this fiscal year. But they aren't adding new products or upsells at anything close to the rate earlier in the year. Salesforce is now in talks about buying Slack, setting up a showdown with Microsoft that could shape the way software is used by many of the world's office workers. Slack changes everything and makes Salesforce a whole new type of company. Rishi Jaluria, an analyst at D.A. Salesforce's annualized revenue topped $20 billion in the fiscal second quarter, with growth of 29%. It caught many off guard . Fast forward to 2020 and Salesforce is expected to announce after markets close Tuesday that it will acquire Slack at a premium in a mixed cash and stock deal, according to a CNBC report. Pros The reasons Slack is a critical acquisition for Salesforce. As expected, the companies announced yesterday that Salesforce would pay $27.7 billion, totaling $11.6 . Salesforces board should look harder at finding a successor for Benioff. The lurking competitive issue for Slack in our opinion remains the stalwart out of Redmond. Others soon followed, most notably Slack CEO Stewart Butterfield . This deal is the strongest signal yet that Salesforce stock has jumped the shark time to take your profits. For Salesforce, the Slack deal is the latest in CEO Marc Benioff's multiyear acquisition spree. The work from home (WFH) trend spurred by the pandemic has left Slack in the dust compared to Zoom. Salesforce is making the biggest acquisition in its 21-year history. SAN FRANCISCO Salesforce said on Tuesday that it would buy the workplace software company Slack for $27.7 billion in cash and stock, the latest in a wave of deals as the coronavirus. Now we know. The stock was priced at around $25 for the past few months. Since the news, Slacks value has risen to more than $25 billion. Today on the Salesforce Admins Podcast, we talk to Brenda Glasser, Salesforce Architect at Ripple and co-leader of the Atlanta Salesforce Architect Community Group. Andreessen Horowitz, Accel Partners and Social Capital were among Tiny Speck's early backers. How so? SAN FRANCISCO Salesforce said on Tuesday that it would buy the workplace software company Slack for $27.7 billion in cash and stock, the latest in a wave of deals as the coronavirus pandemic boosts demand for tools that enable people to work remotely. Slack has blamed the slowdown on some of its small business customers being hurt by COVID-19. Salesforce projected that its revenue could reach as much as $25.6 billion in the next fiscal year, almost double the company's performance in the fiscal year that ended about two years ago.. Salesforce is making the biggest acquisition in its 21-year history. Photo: Thomas Trutschel/Photothek/Getty Images. On Tuesday, it said its revenue rose 20 percent to $5.24 billion in the three months ending with October. On the company's earnings call Tuesday, Benioff said that Salesforce believed it could help Slack reach the next critical stage of revenue growth. By clicking "Reject all" you reject all non-essential cookies and similar technologies, but Yahoo will continue to use essential cookies and similar technologies. Slack joining forces with a beast like Salesforce would address a lot of these issues, rather quickly. In the biggest tech deal of the year so far, Salesforce announced that it plans to buy Slack Technologies provider of the popular workplace-messaging . As a subscriber, you have 10 gift articles to give each month. This is more or less saying: We cant compete with Microsoft Teams anymore. Mr. Butterfield will continue leading Slack, which will become an operating unit of Salesforce. Microsoft Teams [ which offers videoconferencing and is given away at no charge to Office software customers ] has been able to capitalize on the opportunity presented by the pandemic better than Slack, in our view, and this rapid growth in adoption has hurt Slack, according to CNBC. Shares in Slack jumped 37.59% to $40.70 at the close on Wednesday 27 th.This is above the opening value of $38.50 in June 2019 during its IPO, and only slightly below the $42 they reached on that opening . The deal is the biggest bet among a recent spate of acquisitions made by tech companies to capitalize on the shift to remote work. We want to hear from you. Walmart CEO: the lack of stimulus is taking its toll, Senator Ted Cruz: big tech is drunk on power, Shark Tank star Kevin OLeary: people need to save more money, IBM CEO: heres why we just made a landmark business move, Home Depot co-founder and Atlanta Falcons owner gives his best advice to new NY Mets owner, Peloton founder: heres one of my biggest 15 year goals, Kraft Heinz CEO: Buffetts team like our $3.2 billion deal, Kroger CEO: this is how we see the future of food shopping. Salesforce.com expects to add value to its suite of business software by agreeing to buy . The deal, which values Slack at $27.7 billion on revenues of $833 million over the past year, has largely been . 2022 CNBC LLC. It also invested $250 million in the data warehousing company Snowflake just before it went public in September. Salesforce is buying Slack using a combination of stock and cash. Jemal Countess / Stringer. It was created by Stewart Butterfield, famous in the tech world for starting photo-sharing site Flickr and selling it to Yahoo. The company has loosened contract structures and extended credits to help them out. CRM Got a confidential news tip? At the same time, Slack has faced increasing competitive pressure from Microsoft. Stewart Butterfield, the CEO of messaging service Slack, is leaving the company and that has Salesforce (NYSE:CRM) stock falling on Tuesday. Under the terms of the agreement, Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share, representing an enterprise value of approximately $27.7 billion based on the closing price of Salesforce's common stock on November 30, 2020. Slack has been one of Silicon Valley's legendary stories over the past decade, orchestrating one of the wildest pivots the industry has ever seen. Salesforce just picked up Slack for a cool $27.7 billion based on the closing price of Salesforce's common stock on November 30, 2020. 3 min read. This. Slack will continue to be led by CEO and Co-Founder Stewart Butterfield. Slacks trajectory reminded him of Salesforces, Mr. Benioff said, and he marveled at the possibilities of combining the two companies data and tools. The companies also go head-to-head in productivity software, though Microsoft's Office suite controls the market along with Google. Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Marc Benioff, founder, chairman and CEO of enterprise cloud computing company Salesforce. Salesforce stock has climbed nearly 40 percent this year, valuing the company at $220 billion. Slack investors will receive $26.78 for each company share as well as 0.0776 share of Salesforce -- representing a 55% premium to Slack's price on Nov. 24, the day before reports about deal . Chatter has had limited traction, according to a Goldman Sachs report last week that touted the strategic merit of Salesforce buying Slack. it would buy the workplace software company Slack, it planned to acquire the work force management software company Workfront. They shut down Glitch and focused on chat, opening it up to customers in early 2014. Operator: Good afternoon . The deal pits Salesforce against Microsoft in yet another market, with the companies already going head-to-head in sales software, data visualization and productivity tools. Information about your device and internet connection, like your IP address, Browsing and search activity while using Yahoo websites and apps. The CRM giant said Tuesday after market close that it would acquire Slack ( WORK) in a cash and stock deal valuing the workplace. Salesforce ( CRM 0.73%) recently agreed to purchase workplace collaboration platform Slack ( WORK) in a $27.7 billion deal, making it the company's largest acquisition yet. Now perhaps Salesforce will be more complete with Slack, covering organisations' front office, back office, everything they ask for. 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And apps Microsoft has offered the software alongside Office since Teams was released in 2017 Salesforce the! Mr. Taylor said the pandemic has left Slack in the year on Microsoft 's Office suite the.