Remote Work Shake-Up as Salesforce Buys Slack in $27.7 Billion Megadeal

Mandatory Credit: Photo by Kiichiro Sato/AP/Shutterstock (11088938d)The Slack app icon is displayed on a computer screen, in Tokyo.
Kiichiro Sato/AP/Shutterstock / Kiichiro Sato/AP/Shutterstock

What if two of the biggest names in business software for remote workplace productivity joined forces to advance technology? Collaboration across platforms could become even easier – and shareholders of both companies are likely to be pleased with the deal, as well, if early reports are any indication.

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Salesforce (NYSE:CRM) announced its acquisition of Slack Technologies Inc. (NYSE:WORK) on Tuesday, December 1, overshadowing any other news out of Salesforce’s quarterly earnings call.
“Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share, representing an enterprise value of approximately $27.7 billion based on the closing price of Salesforce’s common stock on November 30, 2020,” according to a joint press release issued by the companies.

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“This is a match made in heaven,” Salesforce CEO Marc Benioff said in the release. “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.”

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The release also stated that Slack will become the new communication and collaboration interface for Salesforce Customer 360, deeply integrated into every Salesforce Cloud.
Following the announcement, Slack stock rose 2.24%, up .96 cents to $43.84 at market close on Tuesday, December 1.

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Rollercoaster Ride: The Biggest Stock Climbs and Falls of 2020 So Far

Salesforce didn’t fare as well, falling 1.81% at market close on Tuesday, and another 4.79% in afterhours trading after a lackluster Q3 earnings call. As reported during the call, third-quarter earnings exceeded projections, but soft quarterly earnings guidance for the end of the year were below expert expectations. Laypeople on Twitter had fun commenting about the mystery shrouding the huge company.

Overall, Salesforce stock has risen 49% since the start of 2020, perhaps a reflection of the world’s reliance on work-from-home technology amidst the pandemic. The company also joined 29 other industry leaders in the Dow Jones Industrial Average in the third quarter.

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About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.

Remote Work Shake-Up as Salesforce Buys Slack in $27.7 Billion Megadeal
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