WSJ reports that Salesforce is currently in advanced talks to buy Slack- a deal that would value Slack at more than $17 billion and go down as Salesforce’s largest acquisition ever. If you are quite surprised by the news, Slack's CEO Stewart Butterfield almost gave it away a month back 🧐. Here are some of my thoughts on why this is a great deal for Slack.
Amid the rampant shift to work from home, investors expected a better-than-before earnings report but were instead disappointed to see a mediocre performance.
Slack has blamed the slowdown on some of its small business customers being hurt by COVID-19. Despite having an impressive growth in paid customers, Slack still expects to post a net loss this year. It still remains unclear when the popular messaging tool will turn a profit or will it ever? 🤐
Microsoft Teams boasts more than 115 million daily active users while Slack only has a fraction of that (12 million dau), despite being launched years ago. Having a large existing customer base, Microsoft has been able to quickly scale Teams, as Slack slowly tries to catch up with the tech behemoth.
On the other hand, Salesforce is one of the world’s biggest seller of software and has strong relations with enterprise customers through its CRM software. Slack joining forces with Salesforce could easily help them scale up to more high-paying corporate customers that could make them a sustainably profitable business. 📊
Ultimately Salesforce would do the same thing to Slack, what Microsoft did to Teams-bringing in a huge existing customer base to drive growth & profitability. What do you think about this acquisition? Would like to know your thoughts!