Salesforce, the CRM powerhouse that recently surpassed $20 billion in annual revenue, announced today it is wading deeper into enterprise social by acquiring Slack in a $27.7 billion megadeal.. Both companies tried to buy LinkedIn, the professional networking site, but Microsoft was the ultimate winner. First, Salesforce was blindsided by co-CEO Bret Taylor's resignation less than one year after he took the job. Slack is much smaller than Salesforce whose revenues Benioff aims to more than double to $50 billion, according to CNBC. It also invested $250 million in the data warehousing company Snowflake just before it went public in September. Davidson. "Stewart [Slack CEO Stewart Butterfield] and his team have built one of the most beloved platforms in enterprise software history, with an incredible ecosystem around it, said Marc Benioff, Salesforce chairman and CEO. The Slack buy positions Salesforce against Team, a much stronger Microsoft collaboration product. Benioff and Microsoft CEO Satya Nadella were business friends who turned into rivals, As Bloomberg reported, Benioff was one of the first rivals Satya Nadella forged closer ties with when he took over as Microsoft CEO in 2014, but the executives relationship fractured in 2016 when Microsoft acquired LinkedIn. Salesforce, Inc. (NYSE:CRM) Q3 2023 Earnings Call Transcript November 30, 2022 Salesforce, Inc. beats earnings expectations. "As you know, they're basically entering from the $1 billion to $2 billion phase, which I know extremely well, and this is a moment where we can offer a lot of value. Salesforce.com Inc. is in advanced talks to buy Slack Technologies Inc., according to people familiar . Joining forces gives both Slack and Salesforce a much stronger proposition. Slack provides just enough process to help disseminate ideas. Please upgrade to a supported browser, or try one of our apps. Salesforce is making the biggest acquisition in its 21-year history. It caught many off guard . Sign up for free newsletters and get more CNBC delivered to your inbox. said Tuesday after market close that it would acquire, Coffee Consumption Seen Rising Only Modestly in Next Few Years, Dollar Up, Stocks Down as Traders Eye Rate Paths: Markets Wrap, WRAPUP 1-Ukraine steps up diplomacy amid fighting, power outages, UPDATE 1-Abu Dhabi Investment Authority to invest in India's Lenskart - ET, US-Africa Set to Face-Off on Duty-Free Trade Pact at Summit. I just dont see it.. The total enterprise value of the proposed acquisition has been pegged at $27.7 billion. The move caps an acquisitive streak by Salesforce and ends Slacks run as an independent publicly traded company. If Salesforces revenues for the year grow 22%, it will end 2020 with about $20.8 billion in revenue making Slack a mere 4.2% of the total. Information about your device and internet connection, like your IP address, Browsing and search activity while using Yahoo websites and apps. Along with sharing its third-quarter 2021 results, Salesforce announced that it is buying Slack (NYSE: WORK). Salesforce (CRM) is getting some big work done before year-end. First, the company has seen a cooling in its closely watched calculated billings growth. Selling your company for 27 Billion is a win in the books I read. Anyone can read what you share. In one of the biggest tech mergers, cloud computing giant Salesforce has acquired workplace chat app Slack for $27.7 billion. Microsoft Teams [ which offers videoconferencing and is given away at no charge to Office software customers ] has been able to capitalize on the opportunity presented by the pandemic better than Slack, in our view, and this rapid growth in adoption has hurt Slack, according to CNBC. At the data layer, Mulesoft and Customer 360 enable enterprises to unify data within Salesforce and make it available to other layers of the stack. At the same time, Slack has faced increasing competitive pressure from Microsoft. From their late May high for the year to just before the deal speculation, Slack shares were down 25%. Much of the volatility can be attributed to Microsoft. Would Salesforce buying Slack be an offensive or defensive move? In the biggest tech deal of the year so far, Salesforce announced that it plans to buy Slack Technologies provider of the popular workplace-messaging . Reported EPS is $1.4, expectations were $1.22. The deal pits Salesforce against Microsoft in yet another market, with the companies already going head-to-head in sales software, data visualization and productivity tools. Im thrilled to welcome Slack to the Salesforce Ohana once the transaction closes., Salesforce started the cloud revolution, and two decades later, we are still tapping into all the possibilities it offers to transform the way we work. To this point, we believe the company will have significant difficulty further penetrating the core enterprise market and Microsoft installed base given the significant competitive offering from Microsoft's Teams product that could slow growth going forward quicker than the Street is anticipating, despite the COVID driven tailwinds, warned Wedbush tech analyst Dan Ives. Massive respect to Stewart Butterfield, and thanks for making liberal arts degrees cool again. The company was originally founded in 2009 as an online gaming company call Tiny Speck. Daniel Ives, an analyst at Wedbush Securities, calls the Salesforce's possible Slack purchase "an aggressive move" that would be "a major shot across the bow at Microsoft.". Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Teams, Microsofts collaboration product, reported 115 million daily users in October, up 50 percent from April. Unlike so many cloud companies, namely Zoom and RingCentral, Slack has not seen a COVID-induced revenue boost this year and I'm sure that has contributed to its agreeing to be acquired. Salesforce has had its own work collaboration product, called Chatter, since 2010. Join us as we chat about how evangelizing Salesforce and being an advocate for expanding the use of Salesforce within your company can help propel your career. The acquisition will further intensify Salesforce's rivalry with Microsoft, whose Teams chat and video service has emerged as Slack's stiffest competitor. Salesforce is buying Slack using a combination of stock and cash. Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock (based on the . So, the results are already quantifiable. Jemal Countess / Stringer. Whereas Zooms third quarter revenues grew 365% to $777 million, Slacks growth lagged considerably revenues rose 39% to nearly $235 million. On Tuesday, Mr. Butterfield tweeted that Slack would remain an independent and open platform and said its mission had not changed. As CNBC reported Microsoft and Salesforce face off in. Adobe said last month that it planned to acquire the work force management software company Workfront for $1.5 billion. The tie-up between the two is hardly a surprise. Through a combination of cash and stock, Salesforce is purchasing Slack for $26.79 a share and .0776 shares of Salesforce, according to a statement. Since the news, Slacks value has risen to more than $25 billion. But the forecast for the full year of 21% to 22% growth would represent the company's slowest rate of expansion since 2010. The company spent $15.3 billion on data visualization company Tableau in 2019 and, a year earlier, shelled out $6.5 billion to acquire MuleSoft, whose back-end software connects data stored in disparate places. Also remember enterprise software market still in early stages for a tremendous growth. IBM has built their entire Customer 360 on Salesforce and now has more than 530,000 customers, 380,000 employees and 50,000 partners using our platform. The only real question would be how much Salesforce was willing to spend. Salesforce's annualized revenue topped $20 billion in the fiscal second quarter, with growth of 29%. The opportunity we see together is massive, Slack co-founder and CEO Stewart Butterfield said. Salesforce Is Buying Slack for $27.7 Billion. The deal values Slack at over 24 times estimated revenue for next year. How? On the company's earnings call Tuesday, Benioff said that Salesforce believed it could help Slack reach the next critical stage of revenue growth. With tough competition. The stock was priced at around $25 for the past few months. Data is a real-time snapshot *Data is delayed at least 15 minutes. Salesforce acquired Quip in 2016 but hasn't picked up much momentum against Microsoft and Google. Opinions expressed by Forbes Contributors are their own. Salesforce is also competing with Adobe, and the latter's pending acquisition of Workfront has similarities to the potential Slack deal. The deal is expected to be about half cash and half stock, the. Salesforce to Acquire Slack for $27.7 Billion, https://www.nytimes.com/2020/12/01/technology/salesforce-slack-deal.html. Ives, who recommends buying Salesforce shares, said Teams "has been a clear hurdle to growth" for Slack and that the market will now be "a two horse race between Microsoft and Salesforce.". Under the terms of the agreement,. CRM The company announced on Tuesday that it's buying chat software developer Slack for over $27 billion. As a subscriber, you have 10 gift articles to give each month. In terms of questions, precisely how Slack fits into Salesforce's CRM-and-platform play isn't clear; Salesforce's own Slack-ish competitor, Chatter, hasn't taken control of its market in. While the company said in September that revenue rose 49 percent to $216 million in the three months ending in July and that the pandemic had created a significant increase in demand and usage of Slack, it also said it did not expect that rise to continue. On the day the S&P 500 bottomed, Salesforce (CRM-1.35%) closed at $7.72 per share. Slack Acquisition Date: Dec 1, 2020 Purchase Price: $27.7B Business software pioneer Salesforce.com is buying work-chatting service Slack for $27.7bn in a deal aimed at giving the two companies a better shot at competing against longtime industry. The deal, which values Slack at $27.7 billion on revenues of $833 million over the past year, has largely been . Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. look to roll up the fragmented market for collaboration tools. Others soon followed, most notably Slack CEO Stewart Butterfield . Salesforce's premium for Slack is in the same range (50-55%), though because it includes both cash and stock, the value of the offer fluctuates in sync with the value of Salesforce's own. Published Dec 2, 2020. As part of Salesforce, Slack will be positioned to accelerate and extend its mission to make work life simpler, more pleasant, and more productive. Slack's failure to update this figure is taken widely as a sign of weak growth. Stewart Butterfield, Slacks chief executive, at the companys headquarters in 2017. Get this delivered to your inbox, and more info about our products and services. On December 1, Salesforce announced it would pay $27.7 billion mostly in cash to acquire Slack. Arvind Krishna is a close friend of mine and he believes that bringing Salesforce and Slack together is key for IBM to become even more connected, more productive and more innovative. Through a combination. Reportedly, the integration with Slack improved Salesforce's Service Cloud case close rate by 26%. The company has its headquarters at Salesforce Tower in San Francisco. In July, Atlassian, which sells tools for developers and project management, said it would buy the enterprise services business Mindville for an undisclosed amount. When the acquisition rumor surfaced last week, Slack stock shot up to just under $44/share, marking the first time the value passed the IPO price of $37.50/share. Slack changes everything and makes Salesforce a whole new type of company. Fast forward to 2020 and Salesforce is expected to announce after markets close Tuesday that it will acquire Slack at a premium in a mixed cash and stock deal, according to a CNBC report. Teams now has more than 115 million users while Slack has a fraction of that, despite it having the edge in the minds of most in terms of user interface. Its unclear when Slack will turn a profit, which is something that has weighed on the minds of Wall Street in recent months. It began as tool for volunteer users, generating its user growth through use and network externalities, rather than software sales machinery. But they aren't adding new products or upsells at anything close to the rate earlier in the year. My eyes lit up, he said. The company announced on Tuesday that it's buying chat software developer Slack for over $27 billion. Other firms focused on workplace collaboration products, including Airtable, Asana, Box, DocuSign, Dropbox and Smartsheet, may also be potential targets as highly valued software companies look to roll up the fragmented market for collaboration tools. Salesforce whose stock is up a mere 44.5% in 2020, compared to the Emerging Cloud Indexs 88% pop as of December 1 is paying too much in exchange for too little top-line growth. An earlier version of this article was originally published on November 25, 2020. Prior to Slack, Salesforce's biggest deals were the $15.3 billion purchase of Tableau last year and the $6.5 billion acquisition of MuleSoft in 2018. 3 min read. Andreessen Horowitz, Accel Partners and Social Capital were among Tiny Speck's early backers. Salesforce, which provides marketing and sales software, among other products, has been highly acquisitive as it looks to grow. Microsoft has offered the software alongside Office since Teams was released in 2017. Watch Yahoo Finances live programming on Verizon FIOS channel 604, Apple TV, Amazon Fire TV, Roku, Samsung TV, Pluto TV, and YouTube. What led to Salesforce striking the deal? So, why did Salesforce buy Slack? As software plays a more and more critical role in the performance of every organization, we share a vision of reduced complexity, increased power and flexibility, and ultimately a greater degree of alignment and organizational agility. That comes to about $45.86 a share. With last year's purchase of Tableau, Salesforce jumped into the data visualization market, taking on Microsoft's Power BI. Without Slack, there would have been no Teams. Salesforce is the dominant player in customer relationship management software, where Microsoft is a distant challenger. Marc Benioff, the chief executive of Salesforce. announced it will pay a whopping $27.7 billion for the business chat service, Slack Technologies. In February, Salesforce paid $1.3 billion for Vlocity, a mobile software provider. Under the terms of the agreement, Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share, representing an enterprise value of approximately $27.7 billion based on the closing price of Salesforce's common stock on November 30, 2020. Now with Slack, it provides this incredible credible window into a collaborative interface onto all of our services and the whole enterprise itself, reported CNBC. "We have been surprised by the limited success Slack has seen from the pandemic and the rise of remote work," wrote Rishi Jaluria, an analyst at D.A. This matters for CRM stock as the cloud company . Salesforces board should look harder at finding a successor for Benioff. Software giant Salesforce officially closed on its $27.7 billion record acquisition of messaging app Slack Technologies on Wednesday, as the company bets big on a digital work-from-anywhere future."Together we'll define the future of enterprise software, creating the digital HQ that enables every organization to deliver customer and employee success from anywhere," Salesforce CEO Marc Benioff . Salesforce CEO, Marc Benioff sounds exuberant about this acquisition. Now the messaging app is a part of the cloud giant's suite of enterprise software that provides . For Salesforce, the Slack deal is the latest in CEO Marc Benioff's multiyear acquisition spree. Slack has a market value of about $17 billion. Demand for Slacks products, which allow people to communicate and collaborate with one another, has increased as people work from home during the pandemic. Tiny Speck's game, Glitch, was a failure. Got a confidential news tip? This is our ultimate vision.. But the slowdown has only fed angst on the Street that Microsoft (MSFT) Teams ascent is weighing on Slacks growth potential. The shares debuted on the New York Stock Exchange in June 2019, through a direct listing. CRM is a Strong Buy, based on 20 Buy and 5 Hold . 2022 CNBC LLC. We've lived that life.". Salesforce, which got its start by developing cloud-based software for sales reps, has dramatically expanded its reach in recent years and, along the way, become one of the most valuable software companies in the world, passing Oracle, SAP and IBM as well as other legacy tech companies such as Cisco and Intel. Salesforce said the Slack purchase comes to an enterprise value of $27.7 billion, which takes into account shares outstanding along with debt and cash. Salesforce is now in talks about buying Slack, setting up a showdown with Microsoft that could shape the way software is used by many of the world's office workers. SAN FRANCISCO Salesforce said on Tuesday that it would buy the workplace software company Slack for $27.7 billion in cash and stock, the latest in a wave of deals as the coronavirus pandemic boosts demand for tools that enable people to work remotely. Dec. 1, 2020 1:48 PM PT. We're very sorry, but your browser is not supported! Ron reports that Slack CEO Stewart Butterfield, who joined Salesforce when the company acquired Slack in 2020, . Under the terms of the agreement, Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share, representing an enterprise value of approximately $27.7 billion based on the closing price of Salesforce's common stock on November 30, 2020. Salesforce said Tuesday that it will buy Slack, the workplace software company, for $27.7 billion in cash and stock. Over the past week or so, at least six top executives from Salesforce and its subsidiaries announced plans to leave, Ashley Stewart, chief tech correspondent, writes. Shareholders will get $26.79 in cash and 0.0776 shares of Salesforce stock in exchange for each share of Slack, according to Tuesdays deal announcement. First up, this makes a lot more sense than SAP buying Qualtrics did, but then that is a low threshold. How so? The acquisition which has not been completed yet would end Slack's run as a public company (it first went public in 2019). 00:00. Reuters also covered the story citing sources "familiar with the matter". Slack investors will receive $26.78 for each company share as well as 0.0776 share of Salesforce -- representing a 55% premium to Slack's price on Nov. 24, the day before reports about deal . The Wall Street Journal has reported that Salesforce has made a bid to acquire Slack, the workplace messaging app. Slack's vision is great but it needs a use case, which Salesforce delivers in the B2B sales context. If you plunked down $1,000 at that price, you'd . It was created by Stewart Butterfield, famous in the tech world for starting photo-sharing site Flickr and selling it to Yahoo. The CRM giant said Tuesday after market close that it would acquire Slack ( WORK) in a cash and stock deal valuing the workplace. They shut down Glitch and focused on chat, opening it up to customers in early 2014. According to the Wall Street Journal, thats a 54% premium to its unaffected price [since the deal was reported before which Slack traded at $30, Slack stock popped 38%] and represents a multiple of about 26 times forward sales., By acquiring Slacks over 130,000 paid customers, Salesforce adds to its enterprise applications portfolio in its competition with Microsoft. Salesforce just picked up Slack for a cool $27.7 billion based on the closing price of Salesforce's common stock on November 30, 2020. Mr. Taylor said the pandemic had fundamentally shifted consumer behavior and the way people work. San Ramon, Calif.. - Business software pioneer Salesforce.com is buying work-chatting service Slack for $27.7 billion in a deal aimed at giving the two companies a better shot at competing . Slack has said it has about 12 million daily active users, and Salesforce on Tuesday said Slack now has more than 142,000 paying customers. Slack listed its shares publicly on the NYSE this week with a reference price of $26, which would put it at a value of around $15.7 billion. Erin Griffith reported from San Francisco, and Lauren Hirsch from New York. Slacks revenue will be a tiny drop in the bucket for Salesforce. Slacks trajectory reminded him of Salesforces, Mr. Benioff said, and he marveled at the possibilities of combining the two companies data and tools. Salesforce ( CRM 0.73%) recently agreed to purchase workplace collaboration platform Slack ( WORK) in a $27.7 billion deal, making it the company's largest acquisition yet. But over the course of working on it, Butterfield's team built a product to help them communicate with one another and to share files. Roughly 90 percent of Slacks enterprise customers also use Salesforce. Davidson, in a report last week. A Division of NBCUniversal. This year, Slacks shares were up roughly 25 percent, though they remained below the level of the companys public market debut, before news of a deal with Salesforce broke last week. In August, Mr. Benioff told analysts that Salesforce was not seeking acquisitions, implying that valuations were too high. Under the terms of the agreement, Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share, representing an enterprise value of approximately $27.7 billion based on the closing price of Salesforce's common stock on 30th November 2020. Slack has faced competitive pressure from Microsoft. Together, Salesforce and Slack will shape the future of enterprise software and transform the way everyone works in the all-digital, work-from-anywhere world. Today on the Salesforce Admins Podcast, we talk to Brenda Glasser, Salesforce Architect at Ripple and co-leader of the Atlanta Salesforce Architect Community Group. The companies also go head-to-head in productivity software, though Microsoft's Office suite controls the market along with Google. Slack will combine with Salesforce Customer 360, which connects all apps in the Salesforce suite, and Salesforce says it will completely change how users communicate and work with their clients. In July, Slack filed a complaint against Microsoft with the European Commission, claiming Microsoft had unfairly bundled Teams with its suite of Microsoft Office work products. Meantime, despite impressive growth this year in paid customers amidst the pandemic notably among large corporations and a host of new innovations to retain existing clients, Slack still expects to post a net loss this fiscal year. Slack will continue to be led by CEO and Co-Founder Stewart Butterfield. WATCH: Would Salesforce buying Slack be offensive or defensive? I dont see the logic in paying 26 times forward sales or nearly $28 billion for Slack. But to watchers of the Slack story in 2020, its one that has left bullish investors wanting for more amid the rampant shift to work from home during COVID-19. Rishi Jaluria, an analyst at D.A. The Salesforce deal for Slack shows how competitive the software market has become, said Logan Purk, a senior analyst with financial advisory firm Edward Jones. Salesforce just picked up Slack for a cool $27.7 billion based on the closing price of Salesforce's common stock on November 30, 2020. We've been there. Salesforce could help easily scale up Slack to more high-paying corporate customers in a major challenge to the momentum at Teams. Marc Benioff, founder, chairman and CEO of enterprise cloud computing company Salesforce. + Follow. "They say time is the one thing you can't buy, but in fact, time is the . All Rights Reserved. it would buy the workplace software company Slack, it planned to acquire the work force management software company Workfront. wrote in a report, We have been surprised by the limited success Slack has seen from the pandemic and the rise of remote work. Salesforce (NYSE: CRM), the global leader in CRM, today announced it has completed its acquisition of Slack Technologies, Inc. "We couldn't be more excited to have Slack as part of the Salesforce family, combining the #1 CRM and the trailblazing digital platform for the work anywhere world," said Marc Benioff, Chair and CEO of Salesforce. Salesforce hasn't stopped growing, but importantly, its new bookings are at a low point. SaleForce might have made an offer in the $35 range, and after much negotiation SalesForce and Slack's board of directors agreed on the price of around $44 per share. Salesforce is paying $27.7 billion for Slack, according to the press release. Salesforce.com Inc. agreed to buy messaging company Slack Technologies Inc. in a $27.7 billion deal that shows how the biggest players in cloud computing are racing to add muscle amid the. Slack is projected to grow 39% to $876.3 million in the fiscal year ending January 31, according to analysts surveyed by Refinitiv. This. It seems to me that there is no coincidence in the timing of the announcement of this deal on the same day as Salesforce announced earnings which featured slowing revenue growth. "This deal will be a major shot across the bow at Microsoft," wrote Dan Ives, an analyst at Wedbush, in a report on Monday. "Microsoft Teams has been able to capitalize on the opportunity presented by the pandemic better than Slack, in our view, and this rapid growth in adoption has hurt Slack.". Indeed given how well Nadella has done taking over from Steve Ballmer at Microsoft its shares are up some 484% since he become CEO in February 2014 it would probably be great news for Salesforce shareholders if some like Nadella replaced Benioff. Marc Benioff, Salesforces chief executive, told analysts in August that the company was not seeking acquisitions. Salesforce is making the biggest acquisition in its 21-year history. Salesforce (NYSE: CRM) has confirmed the rumors that started swirling last week. (Photo by Craig Barritt/Getty Images for TIME 100 Health Summit ). Slack has been one of Silicon Valley's legendary stories over the past decade, orchestrating one of the wildest pivots the industry has ever seen. What Adding Slack To Salesforce Means At nearly twice the price of the 2019 Tableau acquisition, the $27.7 billion price tag on Slack is no small purchase. That disparity helps to explain why Slack sold itself this week to Salesforce. As expected, the companies announced yesterday that Salesforce would pay $27.7 billion, totaling $11.6 . Slack is definitely an excellent enterprise software platform. Cofounder Marc Benioff is taking increasing control over the company alienating his top lieutenants and dialing up pressure on employees. The deal is the biggest bet among a recent spate of acquisitions made by tech companies to capitalize on the shift to remote work. The biggest was IBM's $34 billion purchase of Red Hat in 2018, followed by Microsoft's $27 billion acquisition of LinkedIn in 2016. Find out more about how we use your information in our Privacy Policy and Cookie Policy and change your choices at any time by visiting Your Privacy Controls. The purchase marks one of the largest ever for the software industry. A deal could . The CRM giant said Tuesday after market close that it would acquire Slack (WORK) in a cash and stock deal valuing the workplace communications service at $27.7 billion. Salesforce is buying workplace messaging app Slack for $27.7 billion, marking the largest acquisition in the San Francisco-based cloud-based company's history. If you plunked down $1,000 at that price, you'd have 129 shares. Acumen, one of Salesforce's top 10 global partners which has grown to more than 1,000 employees over the last 22 years, is one of few remaining independent cloud . Last year, it bought Tableau, a data analytics provider, for $15.3 billion; in 2018, it bought MuleSoft, a data integration company, for $6.5 billion; and in 2016, it bought Demandware, an e-commerce software maker, for $2.8 billion. SAN FRANCISCO Salesforce said on Tuesday that it would buy the workplace software company Slack for $27.7 billion in cash and stock, the latest in a wave of deals as the coronavirus. Stewart Butterfield, the CEO of messaging service Slack, is leaving the company and that has Salesforce (NYSE:CRM) stock falling on Tuesday. It's a mission-critical app, and one that in the enterprise is really a 10-year commitment. (I have no financial interest in the securities mentioned in this post). We need more firepower.. . Slack has not provided an update on the 12 million daily users it reported a year ago. Combining Slack with Salesforce Customer 360 could be transformative for customers and the industry. Nonetheless, salesforce.com says that its plans to integrate Slack with its own Customer 360 platform will be . It caught many off guard as the reasons for the big spend are still being digested. Salesforce.com expects to add value to its suite of business software by agreeing to buy . Mr. Butterfield will continue leading Slack, which will become an operating unit of Salesforce. Under Mr. Benioff, Salesforce has bought at least 60 companies, including 27 in the last five years, according to S&P Capital IQ. By October of that year, Slack had 30,000 teams signed up, including at Salesforce, and attracted funding from Google's venture arm at a valuation north of $1 billion. Slack stock up 26% for the year before deal rumors surfaced last week has been underperforming its cloud peers. Its valuation was about $19.5 billion when it went public last year, but its shares later sank. Slacks slower growth is due in part to the perception that it has not positioned itself well for WFHs potential tailwind the way Zoom and Shopify have. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Shares in Slack jumped 37.59% to $40.70 at the close on Wednesday 27 th.This is above the opening value of $38.50 in June 2019 during its IPO, and only slightly below the $42 they reached on that opening . On Tuesday, Slack reported that revenue grew 39 percent in the three months ending with October. Customers are rearchitecting how they are work. Were not in a good M&A environment, he said, referring to mergers and acquisitions. While everyone circled around the Slack news, most people completely missed Salesforce's announcement that same day that it planned to acquire Acumen Solutions for $570M. The stock, which opened at $38.50, has been on a roller coaster since, trading near $17 in March of this year, before climbing back close to $40 in June and then dropping back below $25 in mid-November. Its biggest competitor, Microsoft Teams, says it has 115 . By clicking "Reject all" you reject all non-essential cookies and similar technologies, but Yahoo will continue to use essential cookies and similar technologies. Slack is projected to grow 39% this fiscal year, which ends Jan. 31, to $876.3 million, according to analysts surveyed by Refinitiv. It is, as the mighty Anshu Sharma says, the Bloomberg terminal of developers, sales people and marketers. 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