Salesforce is in talks to purchase Slack. The deal could possibly be introduced subsequent week

Salesforce is in talks to acquire Slack. According to someone familiar with the matter, a deal could be announced as early as next week.

Slack’s shares closed nearly 38% higher on Wednesday after the Wall Street Journal first reported that Salesforce had held talks to buy the company. Salesforce, whose shares closed 5% on Wednesday, is slated to release its fiscal third quarter results next week.

It’s unclear how much the deal would be worth. Slack’s market cap surged over $ 20 billion, according to the WSJ’s original report.

Salesforce was on an acquisition path and used the growth in market capitalization in recent years to buy growing companies. The company acquired MuleSoft in 2018 for $ 6.5 billion. This was the company’s largest deal to date to connect cloud applications. The following year, the company spent more than double that on Tableau, acquiring the data visualization company for $ 15.3 billion.

Slack would be one of the biggest software deals in the industry. It would add to the $ 34 billion IBM bought for Red Hat in 2019, the $ 27 billion Microsoft bought for LinkedIn in 2016, and the $ 19 billion Facebook bought for WhatsApp in 2014 Has.

“This would be a critical step for Benioff & Co. to further expand the collaboration engine and product footprint as cloud spending increases across the company,” Wedbush Securities’ Dan Ives told CNBC, referring to Salesforce CEO Marc Benioff.

Microsoft’s stocks, which compete with Slack through their team offering, also fell slightly in the report.

Microsoft is already competing with Salesforce on customer tracking software. In 2016, TechCrunch reported that Microsoft was considering buying Slack for up to $ 8 billion, but a deal didn’t materialize. Later that year, Microsoft introduced the team communication app.

“Our main competitor right now is Microsoft Corporation,” Slack said when the company wanted to become a public company in 2019. Microsoft has a large customer base that it has been able to convert into Teams, and Salesforce could give Slack a similar advantage.

Slack last said in October 2019 that there were more than 12 million daily active users. In October, Microsoft announced that Teams had accumulated 115 million active users every day.

Salesforce and Slack spokespersons were not immediately available for comments.

– CNBC’s Ari Levy and Jordan Novet contributed to this report.

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