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California-based Salesforce all set to acquire Business communication app, Slack

When it comes to talking about a workplace, an efficient workplace- the most important component of efficiency is clear communication. As long as a workplace has this box ticked, a workflow is not much problem.

Slack Technologies Private Limited has introduced a better, faster and a more organised business communications platform, Slack. It serves as a proprietary workspace communication platform that offers IRC-style features and focuses majorly on privacy as it is more secure than any email.

Slack

Source: Slack

Well, recently a Wall Street Journal report announced that CRM-based software company, Salesforce.com Inc. is in talks to acquire the business communication platform, Slack.

California-based Salesforce deals with CRM or Customer Relationship Management software along with marketing analysis, application development and other customer-focused services.

Having said that, the Wall Street report mentioned that the CRM-based software company leverages technology for its consumer management tools and has been seeking to expand and enhance its services.

Amid the COVID-19 Pandemic with several businesses shutting down, Slack has been one of those platforms that struggled during this phase and Slack Technologies has made significant efforts to capitalise on this opportunity while still competing with industry-leading dominant conglomerates like Microsoft Corporation’s ‘Teams’ app.

Salesforce

Source: Rolustech

This is where Salesforce comes in and offers its bid to enhance the company’s operations, make efficiency improvements and capitalise on the industrial switch to ‘work-from-home’ during the COVID-19 pandemic and its induced lockdown.

Another evidentiary statistic of the company’s downfall can be seen from its numbers. According to reports, the company’s shares ended trading on 24th November at a price of $29.57 which is significantly lesser than $42 that the company reached in 2019.

Furthermore, as the deal between Slack and Salesforce is confidential, sources have requested anonymity while alleging that this deal could be a window of opportunity for Salesforce to expand and enhance their operations, a logical extension of its already established offerings.

However, the cost of the deal was not revealed by any of the sources, but they have mentioned that if the deal goes as planned and acquisition of Slack becomes successful, the announcement could affirmatively be made before December 9, i.e. before Slack announces its quarterly earnings.

Slack and Salesforce

Source: Sevaa Group

Slack was running successfully with over 12 million downloads in this financial year 2020, the majority of which were from 2019, as per a report from Sensor Tower.

Unfortunately, The COVID-19 outbreak forced the company to give discount and concessions to customers in order to survive and be reasonable with the cost-cutting and this led to its downfall.

Joining hands with Salesforce, Slack seeks to have better market penetration, becoming a part of a larger company.

 

 

 

 

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