According to the “Wall Street Journal” report on Wednesday, the US software company Salesforce plans to acquire the company’s messaging platform Slack, causing the young company’s stock price to rise.
Since the beginning of the coronavirus pandemic, Slack has gained more and more popularity, and its stock has soared 32%.
Trade was temporarily suspended, but prices still rose by nearly 24% at around 1:00 pm (IST) 11:30 pm.
However, Salesforce, which focuses on technologies that allow businesses to communicate with customers, fell nearly 3%.
“The Wall Street Journal” reported that the two companies have begun merger discussions on an agreement that may make Slack’s market value exceed the current $17 billion (approximately Rs 1,250 crore).
Wedbush analyst Dan Ives said: “If Salesforce does take this path, it will trigger a chain reaction of more cloud software transactions in 2021.”
Ives said this may pave the way for more mergers in the cloud technology sector, especially because this move may make Salesforce a competitor to Microsoft, which owns Slack rival Teams.
Salesforce acquired data software company MuleSoft for approximately US$6.5 million (approximately Rs 470 crore) in 2018, and acquired the data visualization tool Tableau for US$15.7 billion (approximately Rs 1,15,900 crore) in 2019.
Slack aims to make online collaboration between employee teams easier, and its boom is because remote work has gained a cultural foothold during the COVID-19 pandemic.
In the latest quarterly report, the company announced that May, June and July revenues increased by 49% to US$216 million (approximately Rs 16 billion). The platform has 1,30,000 paying customers.
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