Software giant Salesforce is eyeing up an acquisition of Slack, media reports have claimed.
Slack, often perceived as a chat client but essentially a fully-fledged communications and collaboration platform, conducted an Initial Public Offering (IPO) mid-2019, and is now reportedly worth around $20 billion.
According to the Wall Street Journal, the deal could be sealed as soon as this week.
As the motives behind the idea aren’t clear from the get-go, both the media and the analysts were quick to speculate about Salesforce’s endgame with this acquisition. While Tech Crunch argues that there is plenty of potential for cross-selling between each company’s customer base, Wedbush Securities’ Dan Ives told CNBC that the move would be a “gamechanger”.
“This would be a game changer move for Benioff & Co. to further build out its collaboration engine and product footprint as cloud spending ramps across the enterprise,” Ives said.
The market has also had its reaction to the news. Slack’s shares went up 25 percent on the news, according to Yahoo Finance, with Salesforce falling slightly to be down 3.5 percent.
Both companies are yet to comment on the news.
Two years ago, Salesforce acquired software company Mulesoft, for $6.5 billion, and last year, it bought data visualization company Tableau for $15.3 billion.