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The American company ForeclosureBought to create customer relationship management (CRM) software Slack Technologies, the platform for the organization and internal communication of companies. The transaction has been astonishing ever since Paid $ 27.7 billion more than buying Instagram, WhatsApp or SkypeDespite the enormous losses, Slack registered.
“It’s a match made in heaven. Salesforce and Slack will shape the future of business software, changing the way everyone works in a fully digital world that works from anywhere. “said Marc Benioff, President and CEO of Salesforce.
For his part, Stewart Butterfield, CEO and co-founder of Slack, explained “This is the most strategic combination in software history and I can’t wait to get started. “
According to the terms agreed for the transaction, which could be completed between May and July 2021, the amount is composed of cash and Salesforce shares.
The software company plans to fund the cash portion by combining new debt and all of its cash reserves. With that in mind, the company said it had received commitments from Citigroup Global Markets, Bank of America, and JPMorgan Chase Bank to provide a $ 10 billion bridging loan.
We are excited to purchase Slack!
Combine @SlackHQ With # Customer360 will be transformative and create the operating system for the new way of working. Together we enable companies to work successfully from anywhere in the fully digital world.
Important: https://t.co/bRXZ1Iu1fj pic.twitter.com/xcPH5hRb6J
– Salesforce (@salesforce) 1st December 2020
Slack, a company with almost more losses than profits
According to its annual report, released last March between January 2019 and 2020, Slack Benefits for $ 630,422 million.
However, the operating losses were 588.3 million, which corresponds to 93% of total sales. Last year, operating losses accounted for 38.5% of sales, a big difference from today.
Slack stocks are up 20% With the acquisition announced, the Salesforce move may not be that far-fetched.
More expensive than Instagram, WhatsApp or Skype
This is the biggest purchase in Salesforce history. Last year, the company acquired Tableau for nearly $ 14 billion after paying $ 6.5 billion for MuleSoft in 2018.
In 2011, Bill Gates bought skype for 8,$ 500 million. The amount included The communications platform’s debt was approximately $ 1,000 million.
Soon after, in 2012, Facebook paid $ 715 million for Instagram. The purchase, one of the most important in the tech industry, outraged many by the amount, but now it doesn’t seem that exorbitant.
Two years later, in 2014, Mark Zuckerberg joined another app giant in his trading hub: Whatsapp. Facebook paid nearly $ 22 billion from the messaging app. Though the price was up $ 3 billion at the last minute, it’s still below the Salesforce Slack transaction. The operation has since resulted in losses for Zuckerberg as the app is difficult to make money. Even so, it pays for Facebook to have the most used platform with the most users in the world, which helps Facebook dominate the messaging apps market too.
Only time will tell whether or not Salesforce’s investment in Slack is a success.
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