Have you heard about the latest merger: Salesforce acquisition?
Are you familiar with the megadeal?
Have you heard the latest Slack news?
Have you heard about salesforce’s latest acquisition?
Recently Salesforce, the CRM powerhouse that had recently surpassed annual revenue around $20 billion, announced that it was wading deeper into enterprise social by acquiring Slack in $27.7 billion megadeals.
Salesforce, one of the global leaders in CRM and Slack technologies which is one of the most innovative enterprise communications platforms has been under a definitive agreement. The combination of Slack with the Salesforce Customer 360 will be transformative for both the customers as well as the industry. This combination will create the operating system in a new way to work. This will enable companies to grow and establish themselves in the digital world.
Salesforce and Slack will provide the companies with a single source of truth for their business. They would give a unified platform for connecting employees, customers, and partners with each other, and the applications which they use are all within their pre-existing workflow. This deadly combination aims to form the largest Open Ecosystem of Apps and Workflow for business.
Slack’s open platform helps in the integration of 2,400 applications that people use for collaboration and communication. Salesforce platform is one of the easiest platforms to build and deliver apps to connect with clients innovatively.
Marc Benioff, CEO of Salesforce has his sights on tech’s big league. “Together, Salesforce and Slack will shape the future of enterprise software and transform the way everyone works in all-digital, work-from-anywhere world”, Benioff said in a statement. He further added, “This is the most strategic combination in the history of software”. There were rumors regarding the pending deal which were surfaced recently, which caused slack’s stock price to spike.
Stewart Butterfield, CEO of Slack added, “As software plays a more and more critical role in the performance of every organization, we share a vision of reduced complexity, increased power and flexibility, and ultimately a greater degree of alignment and organizational agility”. Slack has spread its arms towards the leading organizations in every industry around the globe, from start-ups to Fortune 500 companies like Starbucks, Target along with non-profits, and governments in over 150 countries.
It is a great deal which is no less than a surprise to many. It was next to impossible for Salesforce not to acquire Slack. The value of slack has been at a downfall, which was around 40% since the time it went public, which was hard to ignore. Slack has been helpful to Salesforce in many ways, it has brought Salesforce closer to its main competitor and arch-rival Microsoft.
This deal has also put Salesforce more on par and in direct competition with Microsoft. It is very evident, Microsoft is the choice for large corporations and people around the world. Microsoft has seen a significant spike in the usage of Teams. It is a business communication software. COVID-19 has changed the work scenario around the world, making most businesses rely on online work so that people can manage remote workforces. The Team product of Microsoft has directly challenged Slack in the market. Microsoft, which earlier passed on buying Slack of what Salesforce is paying right now, has made Team a key priority in recent times.
Slack is the perfect choice for Salesforce as it can integrate with the other enterprise software as well. Slack would make software integration within the Salesforce product very easy. Salesforce customers are at a profit since they would be able to work directly as a part of the Salesforce tools due to Slack bots.
The connection of all the employees to their organization needs to be built. Slack helps in building external contacts with clients and partners which would be beneficial to Salesforce. Slack’s public value had been very uninspiring and it had lost $147.6 million, it was waiting for an acquisition like this one. The surprising factor is the price here.
In 2016, Salesforce was interested in Twitter, which was the same year when Microsoft had its eye on slack, but the idea was put to a halt after the objection of the shareholders as they didn’t want to deal with the controversial side of the platform. Slack was founded in 2013, but its origin goes back to when an online multiplayer game company was formed in 2009. The gaming company didn’t survive but the start-up developed an internal messaging system in the process of building that company which was finally formed into Slack. Finally, Slack has been acquired by Salesforce which seems to give us promising results.
The deal however did not provide any information on the existing slack customers. It is still the question in our minds whether the existing Slack customers will be moved to the Salesforce platform or not. Although the reports assure that there will be no change in the operation of the platform.
According to the internet survey, Slack’s current value is just over $25 billion which was valued very efficiently by the market. Slack has managed to be raised by 48% from its evaluation that preceded the deal of becoming known. For Slack, the path was built with high expectations. With the Salesforce acquisition of Quip in one hand and slack in another, Salesforce has a much more comprehensive social tale to tell than its internal alternatives.