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Salesforce Plans To Acquire Slack For $27.7 Billion

by appstudio December 15, 2020 Time to Read Blog: 3 minutes

Salesforce has confirmed that it bought the Slack team collaboration platform in a deal worth $ 27.7 billion. Salesforce says it plans to merge Slack with Salesforce Customer 360. However, a tool introduced in 2018 that will allow companies to connect Salesforce apps and Maps teams.

Also, it helps to reconcile data sources across organizations, creating what they call an operating system for new ways of working. 

Define What is Slack?

Companies use Workplace collaboration software primarily as an alternative to email, although some non-workplace groups have adopted it for communication. Instead of a full email inbox, users get live chat messages on their Slack desktop, web app, or mobile phone. There’s no place or time Slack’s messages can’t find you unless you remember to press snooze.

What makes the app so attractive to companies are the details. There’s the ability to create public or private chat groups for teams and departments or send direct messages to people. Most interesting to Salesforce, it designs to work with other popular workplace tools like Google Docs or Trello, making it useful for more than chats. And fun details like GIFs, animated emojis, and quiz shortcuts or creating emoticons make it an attractive place for employees.

Why does Salesforce want to Buy Slack?

Salesforce is known for many things. Its core product is a cloud-based program for managing marketing and sales. However, Slack is the largest acquisition in Salesforce’s 21-year history.

Purchasing Slack gave Salesforce the tools to fight one of its competitors. However, Microsoft, which had been pressing on Teams during the COVID-19. Google has also pushed a suite of collaboration and video tools, and Zoom has been increasing as a video-only option.

Bernstein analysts say they think Salesforce has shown interest in expanding the collaboration space over the years, and Slack provides a clear channel into that space. Appstudio said UBS analysts warned in a note that the acquisition might not be a good fit for Salesforce and could extend it after some other purchases. Moreover, the $ 15.3 billion acquisition of data visualization software company Tableau in 2019 – took it further from its core relationship management business Customer. 

Salesforce has a solid acquisition track record, and many investors might just give the Salesforce CEO the advantage of the doubt on the Slack acquisition that analysts wrote. The previous acquisition went better than expected.

Salesforce Buys Slack For $27.7

Check out the video presentation:

The Salesforce Rumors Confirm Acquire Slack For $ 27.7 Billion

Rumors first out last week that Salesforce, a cloud software giant, talks to buy Slack. As per a well-known Salesforce application development agency, the global pandemic is providing profits to remote working devices.  On top of that, Slack has struggled to take full advantage of the moment and fend off aggressive competition from teams like Microsoft.

Slack went public on the New York Stock Exchange last June, opening trading at $ 38 per share with a valuation of $ 23 billion. But the company’s shares have been in free fall in the roughly 17 months since. In the quarter leading up to last week’s rumors, Slack’s stock typically ranged between $ 25 and $ 32.With news of Salesforce’s interest, Slack’s share price surged to an all-time high of more than $ 44, giving a market cap of $ 25 billion.

What Does An Acquisition Mean For Slack users?

Will Salesforce take your favorite Slackmoji? Will it be renamed to Salesforce Chat? There is always the question of what would happen to a product if a larger company purchased it.

Salesforce is no stranger to seizing existing brands, but few are known outside the industry like Slack. Chat company brand loyalty can influence how much Salesforce decides to adjust and how much it leaves. Salesforce has announced plans to incorporate Slack with its existing software, but that could mean more changes for Salesforce users than Slack users in the short term.

Scaring longtime users by replacing the rainbow Slack logo with Earnie the badger, one of the Salesforce characters, may not be on the company’s to-do list. After reading the full article you will be in trouble, so contact us without wasting your necessary time. Our experts will help you by providing the best solution.

appstudio

AppStudio is a Leading Mobile App Development Company in Canada. We offer services in iOS Development, Android Development, healthcare development, React Native Development & Game Development. Plus, we build innovative web & mobile apps for businesses worldwide. We have a team of App Developers, IOT Developers, hadoop developers, machine learning developers, AR/VR Developers, artificial intelligence developers, Python developers, salesforce Application & Top UI/UX Developers. We have collaborated with Fortune 500 companies &, Startups across a spectrum of industries. To create Mobile apps that are actively being used by millions of users across the globe.

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