![]() “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. “I just don’t see it.Salesforce (NYSE: CRM), the global leader in CRM, today announced it has completed its acquisition of Slack Technologies, Inc. “We’re not in a good M&A environment,” he said, referring to mergers and acquisitions. Benioff told analysts that Salesforce was not seeking acquisitions, implying that valuations were too high. Chatter has had “limited traction,” according to a Goldman Sachs report last week that touted the “strategic merit” of Salesforce buying Slack. Salesforce has had its own work collaboration product, called Chatter, since 2010. It also invested $250 million in the data warehousing company Snowflake just before it went public in September. 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. In February, Salesforce paid $1.3 billion for Vlocity, a mobile software provider. On Tuesday, it said its revenue rose 20 percent to $5.24 billion in the three months ending with October. Salesforce stock has climbed nearly 40 percent this year, valuing the company at $220 billion. Benioff, Salesforce has bought at least 60 companies, including 27 in the last five years, according to S&P Capital IQ. Salesforce, which provides marketing and sales software, among other products, has been highly acquisitive as it looks to grow. “This is more or less saying: ‘We can’t compete with Microsoft Teams anymore. “When you’re a scrappy start-up going against an 800-pound gorilla that’s one of the most well-capitalized companies in existence, it’s tough to compete,” Mr. Microsoft has offered the software alongside Office since Teams was released in 2017. 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. Slack has not provided an update on the 12 million daily users it reported a year ago. ![]() Teams, Microsoft’s collaboration product, reported 115 million daily users in October, up 50 percent from April. On Tuesday, Slack reported that revenue grew 39 percent in the three months ending with October.Īt the same time, Slack has faced increasing competitive pressure from Microsoft. ![]() Layoffs at some of its customers have hurt its business, the company said. While the company said in September that revenue rose 49 percent to $216 million in the three months ending in July and that the pandemic had created a “significant increase in demand and usage of Slack,” it also said it did not expect that rise to continue. Its valuation was about $19.5 billion when it went public last year, but its shares later sank.ĭemand for Slack’s products, which allow people to communicate and collaborate with one another, has increased as people work from home during the pandemic. Butterfield, grew quickly and previously attracted - and rejected - takeover offers from the likes of Google, Microsoft and Amazon. Butterfield will continue leading Slack, which will become an operating unit of Salesforce.
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