Salesforce takeover of Slack - discussion

Hi guys,

Just read a bit about Salesforce takeover of Slack for $27.7bn (54% premium and 26x sales NTM), and the subsequent reaction of Salesforce stock, which plunged ~10%.

I think Salesforce is trying to compete with Microsoft, which offers Microsoft Teams and bundled Teams with O365 for free, however, the PF revenue is ~40% of Microsoft's commercial cloud business.

The price seems exaggerated, but given the massive potential synergies (should the integration be successful) and the impressive unit economics of Slack, why has the market reacted so poorly?

Furthermore, Salesforce was trying to build a solid communications platform for a while, but all initiatives failed so far.

Do you think that the takeover was a bold move from Salesforce? 

Keen to hear your thoughts and discuss

4 Comments
 

Both companies are completely retarded. There hasn’t been a need for a new Crm since 1992 and slack is just a stupid chat. This shows how completely corporate America are mark ass bitches. 

 

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