Salesforce acquires Slack in a deal for $27.7 Billion. The rumours suggesting this acquisition was out a week ago, and the company’s share saw a major spike due to the same. The co-founder and CEO of Salesforce Marc Benioff said that the acquisition of Slack would help them bring a new transformation to the way people interact and work digitally. He also said that the match of Salesforce and Slack are made in heaven and is going to be a great thing for both companies.
Slack started as a game in 2009 and later evolved into a messaging platform after the game’s failure. The company’s unique idea helped it to raise $1 billion and achieve a $7 billion evaluation before going public in 2019. Though we can see the huge growth of the company from nothing to a big company, it has faced massive competition from similar platforms of other tech companies. So, yes, the company has been through a lot of ups and downs and finally is being acquired by another software company.
More about the acquisition
Slack hasn’t been doing particularly well in the stock market since it went public. In 2020, the company’s value depreciated by around 40%. After the two quarters of 2020, the company’s net losses amounted to $147.6 million. It bad market performance and increasing losses were one of the major reason why the takeover happened. But, the price that Salesforce paid for the acquisition was quite more than expected. Because as per the evaluations done by major companies like Google finance and Yahoo Slack is estimated at $25 billion.
Well, even Microsoft was interested in acquiring Slack for a much lower price in 2016. But, due to some reasons, the deal did not go through, and now it has become a big competition for the company.
How will Slack be beneficial for Salesforce?
Salesforce is a direct competitor to Microsoft, which has its own teams’ app. And now with the acquisition of slack, the company has somewhat managed to be on the same level of Microsoft. Now the company can use Slack for its company’s operations which can be made much more efficient. Plus, the integration of bots and other software can help the app to be used more comfortably by the company.
What are your thoughts on the fact that Salesforce acquires Slack and how will it be beneficial for the company? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.