Salesforce acquires Slack in a $27.7B megadeal, thus marking one of the biggest tech acquisitions
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BERLIN, GERMANY - APRIL 22: The logo of Instant Messaging Service Slack is shown on the display of a smartphone on April 22, 2020 in Berlin, Germany. (Photo by Thomas Trutschel/Photothek via Getty Images)
Salesforce acquires Slack in a $27.7B megadeal, thus marking one of the biggest tech acquisitions, more than the $26B acquisition of LinkedIn by Microsoft. Salesforce recently also surpassed an annual revenue of $20 billion!!
You can imagine how easy would it have been for it to get Slack for $27.7B. This match made in heaven is all set to give a cut-throat competition to Microsoft. This news might also be a big regret for the Satya Nadela led Microsoft as in 2016 it walked off from acquiring Slack.
Slack has had a celebrated past as it raised more than $1 billion while private, earning an impressive $7 billion valuation before going public last year. Slack was always ripe for the taking until 2020 when it had lost around 40% of its value since it went public
Its most recent earnings report also stated that the company had lost 16% of its value. It also accumulated net losses of $147.6 million during the two quarters ending July 31, 2020. This raises a question on the valuation price of Slack.
According to Yahoo and Google Finance, Slack’s current valuation is just over $25 billion, but it is sold for a higher price. What do you think could have been the reason behind this up selling?
What is your interpretation of this biggest tech acquisition?
