With the COVID-19 pandemic showing no signs of being under control anytime soon, Slack has continued to hold an important role for companies and workforces newly operating remotely in efforts to remain safe and healthy. Slack was an important tool for many groups even before the pandemic, but it has become integral for much of 2020. And while many stocks arguably benefiting from the pandemic took a recent hit on word of a possible vaccine coming soon, Slack just saw a jump in share price based on rumors of acquisition by customer relationship management company Salesforce.
Salesforce’s possible acquisition of Slack was suggested in a recent Wall Street Journal report, as reported by CNBC. Following the report, Slack stock shares jumped by a massive 25%. Meanwhile, Salesforce stocks dipped by 4% on the news. Microsoft’s stock also took a slight dip in price, likely due to competing directly with Salesforce in cloud software and with Slack through its similar Teams platform. Nonetheless, Slack is easily the group that benefits most from the news of the possible acquisition.
In addition to its stock boost, Slack’s possible acquisition by Salesforce could give it the momentum it needs to compete with Microsoft and Teams well into the future. Teams has reportedly been the company’s biggest competitor since Slack prepared an IPO in 2019, due to Microsoft’s already large user base and its opportunity to convert many of those users over to its Teams platform. Under the Salesforce umbrella, Slack could arguably gain a similar benefit from the former’s own considerable user base.
Nothing has been confirmed as of yet. However, with Slack apparently valued at around $17 billion in the deal, it would be Salesforce’s largest acquisition yet. Stay tuned as we follow this story for further news and updates.