Even with the expansion of corporate communication suites like Microsoft 365 and Google Workspace (formerly known as G Suite), Slack remains one of the most popular enterprise communication tools. And despite a cursed collab with Cole Haan, Slack stock soared following rumours that the popular app might get acquired by Salesforce.
According to a source who spoke to CNBC, Salesforce is in talks to buy Slack, with a deal potentially getting announced as early as next week. Speculation regarding the deal caused Slack stock to jump as high as 32% before trading was halted earlier today. With a valuation estimated at somewhere between $US15 ($20) and $US20 ($27) billion dollars, a buyout of Slack would be Salesforce’s largest acquisition ever, behind the company’s $US6 ($8) billion buyout of MuleSoft back in 2018.
People don’t normally think of Salesforce as a direct competitor to companies like Microsoft and Google when it comes to enterprise communication. Yet between Salesforce’s Chatter, document sharing and collaboration tech Saleforce acquired when it bought out Quip in 2016, and this possible deal for Slack, Salesforce could be looking to create its own communication suite that would help the company expand its reach and provide a relatively stable revenue stream. While firmly pitting it against the two other giants
Furthermore, while Slack may be best known as a messaging app, Slack has always had bigger ambitions to serve as a tool to enhance collaboration, manage workflows, and facilitate client outreach. And with a huge number of high profile companies that already use Slack including Target, Intuit, Oracle, adding Slack to its portfolio could be a huge win for Salesforce.
Both sides of this rumoured deal could have big gains if it goes through. That said, while rumours have started to swirl, the Wall Street Journal says it still possible that a deal might fall through. Salesforce is scheduled to announce quarterly earnings next week on Dec. 1, so if it’s going to snap up the software many of us talk to coworkers with, there’s a good chance Salesforce will try to finalise an acquisition before then.