Salesforce takeover of Slack is a defining moment for cloud software

Meet the new boss. Same as the old boss. Those lyrics from The Who nearly 50 years ago sum up the sinking sense of inevitability that comes with each new round of consolidation in tech.

Periods defined by their innovative start-ups and restless reinvention give way to phases when industry leaders buy up the most promising newcomers and either snuff out their ideas or bend them to their own ends.

The cloud software business — also known as software as a service, or SaaS — may just have reached its moment of reckoning. This week’s $27.7bn acquisition of workplace messaging company Slack by Salesforce looks like a turning point — and not just because Slack has been emblematic of a wave of start-ups searching for new and more creative ways of working.

In the parlance of business software, the deal highlights the perennial tension between “best of breed” products —

Read More

The VC investors who stand to benefit most when Salesforce buys Slack

  • After Slack went public last year, a few of the VCs who funded it when it was a private startup held onto a chunk of their shares.
  • And they will be rewarded handsomely now that Salesforce has agreed to pay a premium and buy Slack for $27.7 billion.
  • The investors who stand to benefit include Chamath Palihapitiya and Accel’s Andrew Braccia.
  • Visit Business Insider’s homepage for more stories.

Salesforce chief Marc Benioff has called his company and Slack “a match made in heaven.”

And if Salesforce’s purchase of the popular work-chat app for $27.7 billion passes regulatory muster, their union should make some major Slack investors very happy and über rich.

Many of them are the kinds of institutional investors that often own large chunks of newly public tech companies, such as T.Row Price, Vanguard, and BlackRock. 

But a number of them are VCs who first bought in when Slack

Read More

Salesforce bought Slack for $ 27.7 billion, more than what was paid for Instagram, WhatsApp or Skype

The software company acquired the business organization platform despite the fact that it reported operating losses equivalent to 93% of its revenues.

Free Book Preview Money-Smart Solopreneur

This book gives you the essential guide for easy-to-follow tips and strategies to create more financial success.


4 min read

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.


The American company Salesforce , dedicated to creating software for customer relationship management (CRM), bought Slack Technologies , the platform designed for organization and internal communication of companies. The transaction caused astonishment, as they paid $ 27.7 billion, more than the purchase of Instagram, WhatsApp or Skype cost , despite the huge losses that Slack records.

“It is a match made in heaven. Salesforce and Slack will shape the future of business software and transform the way everyone works in a fully

Read More

Salesforce to acquire Slack for $27.7 billion amid remote work boom

Cloud computing giant Salesforce said it will acquire workplace messaging service Slack in a deal valued at $27.7 billion.



text: The Salesforce logo is seen at its headquarters on Dec. 1, 2020 in San Francisco.


© Stephen Lam/Getty Images
The Salesforce logo is seen at its headquarters on Dec. 1, 2020 in San Francisco.

Salesforce announced the deal on Tuesday, saying that under the terms of the agreement, Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share. The deal is subject to shareholder approval and expected to close in the second quarter of Salesforce’s fiscal year 2022.

Loading...

Load Error

Salesforce shares slipped Wednesday, falling 10% in early trading as Slack slipped by about 3%.

The move comes as the pandemic has accelerated demand for remote work and workplace management software, and signals that some believe that workforce shifts could become permanent.

MORE: Salesforce announces layoffs after quarterly revenue tops $5 billion

Salesforce CEO Marc Benioff called it

Read More

Salesforce buys Slack for $27.7 billion in cloud company’s largest deal

Marc Benioff, founder, chairman and CEO of enterprise cloud computing company Salesforce.

Kim Kulish | Corbis News | Getty Images

Salesforce is making the biggest acquisition in its 21-year history. The company announced on Tuesday that it’s buying chat software developer Slack for over $27 billion.

Through a combination of cash and stock, Salesforce is purchasing Slack for $26.79 a share and .0776 shares of Salesforce, according to a statement. That comes to about $45.86 a share. Prior to initial reports of a deal last week, which led to a 38% pop in Slack’s shares, the stock was trading at under $30.

The purchase marks one of the largest ever for the software industry. The biggest was IBM’s $34 billion purchase of Red Hat in 2018, followed by Microsoft’s $27 billion acquisition of LinkedIn in 2016. Last year, the London Stock Exchange agreed to buy data provider Refinitiv for $27

Read More

Salesforce buying work-chat service Slack for $27.7 billion

SAN RAMON, Calif. (AP) — Business software pioneer Salesforce.com is buying work-chatting service Slack for $27.7 billion in a deal aimed at giving the two companies a better shot at competing against longtime industry powerhouse Microsoft.

The acquisition announced Tuesday is by far the largest in the 21-year history of Salesforce. The San Francisco company was one of the first to begin selling software as a subscription service that could be used on any internet-connected device instead of the more cumbersome process of installing the programs on individual computers.

Salesforce’s flamboyant founder and CEO Marc Benioff hailed the “cloud computing” concept as the wave of the future to much derision initially.

But software as a service has become an industry standard that has turned into a gold mine for longtime software makers. Microsoft for one has developed its own thriving online suite of services, known as Office 365, which includes

Read More

Salesforce to buy Slack in $27.7 billion deal

Salesforce is buying workplace messaging app Slack for $27.7 billion, marking the largest acquisition in the San Francisco-based cloud-based company’s history.



graphical user interface, application


© Shutterstock


Under the terms of the agreement, Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce stock per Slack share. Salesforce announced the deal Tuesday in conjunction with its earnings release for its third quarter of fiscal 2021.

Loading...

Load Error

The move will allow Salesforce, which sells cloud-based customer relationship management software and other enterprise applications, to bolster its business offerings.

Slack’s stock was essentially flat in after hours trading Tuesday. Salesforce shares fell more than 4%.

Salesforce on Tuesday posted third quarter revenue of $5.42 billion, up 20% from the same period in the prior year, and diluted earnings per share of $1.15. The results beat analyst expectations, but revenue growth slowed compared to the two earlier quarters in this fiscal year.

The company

Read More

Salesforce acquires work chat app Slack for $27B

Dec. 1 (UPI) — Cloud computing company Salesforce acquired workplace chat app Slack in an agreement announced by the two companies Tuesday.

Salesforce agreed to pay $27.7 billion for Slack, with Slack shareholders receiving $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share. The valuation was based on the closing price of Salesforce’s common stock on Monday.

Marc Benioff, chair and CEO of Salesforce, praised Slack CEO and co-founder Stewart Butterfield for building “one of the most beloved platforms in enterprise software history.”

“This is a match made in heaven,” he said. “Together, Salesforce and Slack will shape the future of enterprise software and transform the way everyone works in the all-digital, work-from-anywhere world.”

Butterfield similarly said the two companies see a “massive” opportunity in working together.

“As software plays a more and more critical role in the performance of every organization, we share a

Read More

Salesforce to acquire Slack for $27.7 billion

Other firms focused on workplace collaboration products, including Airtable, Asana, Box, DocuSign, Dropbox, and Smartsheet, may also be potential targets as highly valued software companies look to roll up the fragmented market for collaboration tools.

The Salesforce deal for Slack shows how competitive the software market has become, said Logan Purk, a senior analyst with financial advisory firm Edward Jones. Without a “game-changing product” and a lot of capital, he said, “you’re going to get swallowed up or you’re going to fail.”

Slack, which was founded in 2010 by Stewart Butterfield, its chief executive, grew quickly and has attracted — and rejected — takeover offers from the likes of Google, Microsoft, and Amazon. Its valuation was about $19.5 billion when it went public last year, but its shares later sank.

Demand for Slack’s products, which allow people to communicate and collaborate with one another, has increased as people work from

Read More

Salesforce To Buy Slack In $27.7 Bn Software Megadeal

Salesforce on Tuesday announced a $27.7 billion deal to buy online collaboration firm Slack, giving the business software giant a broader array of tools as the pandemic fuels a remote work trend.

San Francisco-based Salesforce will mesh Slack messaging technology with its platform for managing marketing and sales teams.

“Together, Salesforce and Slack will shape the future of enterprise software and transform the way everyone works in the all-digital, work-from-anywhere world,” Salesforce chief executive Marc Benioff said in a release.

The deal gives Salesforce the popular workplace messaging software developed by Slack which has faced increased challenges during the coronavirus pandemic from video-based services such as Zoom.

Slack co-founder and chief executive Stewart Butterfield said: “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

Read More