Why Salesforce buying Slack for $27.7 billion isn’t a shock
|Symbol||Last Price||Change||% Change|
|CRM Salesforce, Inc.||190.44||+1.25||+0.66%|
|DOCU DocuSign, Inc.||89.42||-0.68||-0.75%|
|MSFT Microsoft Corporation||271.67||+1.26||+0.46%|
Jun 9 2022
Is Salesforce paying too much for slack?
Slack and other instant-messaging platforms have only become more vital during the pandemic as millions of people work from home. And just last month, Salesforce announced it was buying Slack for a whopping $27.7 billion — that’s a pretty huge deal for a company that’s just seven years old.
When will Salesforce acquire Slack?
The transaction is anticipated to close in the second quarter of Salesforce’s fiscal year 2022, subject to approval by the Slack stockholders, the receipt of required regulatory approvals and other customary closing conditions.
Does Salesforce own slack?
Who owns Slack? Share All sharing options for: Now Salesforce officially owns Slack. 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.
When is Salesforce buying slack?
With those questions in mind, here are 16 things for investors to know:
- The rumors all started because people familiar with the deal said Salesforce is in talks to buy Slack.
- As a result of those rumors, WORK stock is up nearly 23% in the market.
- CRM stock, however, is not so lucky. …
- This is likely because any such deal would value Slack at more than its $17 billion market capitalization.
Why did Salesforce buying Slack for $27.7 billion?
Taylor said the pandemic had fundamentally shifted consumer behavior and the way people work. Buying Slack would help Salesforce’s customers make the digital transformation, he said. Roughly 90 percent of Slack’s enterprise customers also use Salesforce.
What happens to Slack stock if bought by Salesforce?
Slack Technologies (NYSE:WORK), the collaboration software firm, is the subject of a takeover bid from Salesforce (NYSE:CRM). The agreement stipulates that Slack shareholders will receive $26.79 in cash and 0.0776 Salesforce shares per share of WORK owned.
Will Slack be delisted?
Its stock, ticker WORK, started trading on June 20, 2019. The NYSE set a reference price of $26 to start off trading and the stock rose to more than $41 in the initial hours of trading. It was delisted in June 2021 after Salesforce completed is acquisition, and shareholders were given Salesforce stock.
Why Slack is so popular?
Simple file sharing — Slack is incredibly intuitive in its UI, so it’s natural that they’ve created simple file-sharing options. Slack helps users save time and have a better experience by letting them drag and drop files and paste images directly into the chat.
Acquisition to create the digital HQ for success from anywhere
Companies around the world have learned one thing over the past year—if you don’t have a digital way to connect with your employees, customers, and partners, you don’t have much of a chance of surviving.
Salesforce and Slack have joined forces to create the Slack-First Customer 360
Now it’s easier than ever to connect customers, employees, and partners with the conversations, apps, and data that power digital workflows for an all-new way to work.
Does Slack compete with Microsoft?
Yes , Slack competes with Microsoft. But Slack is past $1B in annual revenues with a dominant brand and very high net revenue retention (120%+). Salesforce may not be great at creating brand new things anymore. But it knows how to lean into a dominant market share.
Is Slack an enterprise?
They know how to take an established brand and grow it faster, and build or expand a new core offering around it. Slack has already become very enterprise. The majority of Slack’s growth is from larger, enterprise accounts where Salesforce is strong. $100k+ deals are the majority of its growth engine.
Is Salesforce good?
Salesforce is very, very good at providing a bigger solution — and then charging more for it. Watch it over time drive up Slack ACVs, most likely. It looks like Slack has been under some pricing pressure from Microsoft. That won’t go away, but Salesforce knows how to sell against a cheaper solution.