Salesforce Reportedly Kicks Tires on Slack Acquisition

Shares of work messaging app Slack Technologies  (WORK) – Get Report jumped more than 7% Wednesday after the company was reportedly approached for an acquisition by Salesforce  (CRM) – Get Report

Any deal would value Slack above its current $17 billion market capitalization, The Wall Street Journal reported. It would  represent Salesforce’s largest acquisition to date. 

There is no guarantee that the acquisition talks will lead to a deal and Salesforce could ultimately choose a different target, sources told the Journal. 

Slack jumped 7.1% to $31.68 on the news before being halted due to volatility. Salesforce shares dropped more than 3% on the news to $252.70, though the stock has risen about 55% year to date. 

Requests for comment from both Slack and Salesforce weren’t returned immediately Wednesday.

Analysts at Wedbush published an industry note Wednesday afternoon following the news, saying “This would be an aggressive move for Benioff & Co. to further expand its cloud enterprise product offering.”

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