- Salesforce is reportedly considering purchasing the Slack desktop chat app, according to a Wall Street Journal report on Wednesday.
- The move would mark the cloud giant’s foray into desktop communications software.
- There is no indication that preliminary discussions will lead to an acquisition, according to the report.
- Visit the Business Insider homepage for more stories.
Salesforce is considering purchasing the Slack workplace messaging app, according to a new report from the Wall Street Journal.
There is no indication that preliminary talks will lead to an acquisition, the report said, but a deal would mark the cloud giant’s foray into desktop communication. It would be Salesforce’s largest acquisition in its history, with Slack’s market cap of $ 17 billion.
Salesforce and Slack were not immediately available for comment.
This would continue the great frenzy of Salesforce acquisitions. Salesforce has made two significant acquisitions in recent years, data visualization company Tableau for more than $ 15 billion in 2019 and MuleSoft for $ 6.5 billion in 2018.
Notably, during the company’s last quarterly earnings call in August, CEO Marc Benioff said that for a company like his, he “doesn’t really see an environment for mergers and acquisitions” right now, hinting that another great acquisition is not in the cards. At the time, he also said that Salesforce was focusing on integrating its MuleSoft and Tableau acquisitions this year.
Read more: MuleSoft Consulting Partner Apisero CEO Shares Tips for Building a Successful Business in the Salesforce Ecosystem – and the Pitch Deck That Convinced Salesforce Ventures to Invest
However, Salesforce made a few small acquisitions this year, such as Vlocity for $ 1.3 billion in February and marketing network The CMO Club for an undisclosed amount in early March. Analysts had previously speculated that Salesforce would need to make more acquisitions to maintain its rapid pace of growth. In a recent UBS note, analysts denounced a “lack of innovation” from Salesforce that could slow its growth.
Salesforce and Slack have had a pre-existing partnership since 2016 and expanded it last year so that users can more easily switch between the two cloud services.
The two companies compete with Microsoft, Salesforce with Microsoft’s customer relationship management tools, and Slack with Microsoft Teams, its chat and collaboration app. A merger could potentially position the two companies as a stronger competitor to Microsoft.
Slack shares jumped more than 29% on the report on Wednesday, while Salesforce shares fell about 3.5%.