Market Overview

CNBC: Microsoft And Salesforce Held Talks, Could Not Agree On Price

Share:
Related MSFT
Upcoming Earnings: Heavy-Equipment Maker Caterpillar And Pharma Giant Eli Lilly Report On Tuesday
The Case For Being Optimistic On Okta
IBM Blockchain Payments Aren't an Upbeat Signal for Cryptocurrencies (GuruFocus)
Related CRM
Adobe Remains A Top Large-Cap Pick With Analysts
5 Tailwinds That Could Carry Yext Shares Higher
Stocks At Record Highs As Cisco, Salesforce.com Reach Buy Points (Investor's Business Daily)

Shares of Salesforce.com, inc. (NYSE: CRM) spiked up over 2 percent Friday following a report from CNBC’s David Faber that the company had been in talks with Microsoft Corporation (NASDAQ: MSFT) about a purchase.

According to the sources that were familiar with the situation, the talks eventually stalled as the two companies could not agree on a price for Salesforce.com.

Microsoft was said to be willing to offer approximately $55 billion for Salesforce, while its founder and CEO Marc Benioff may have asked as much as $70 billion for the company.

Related Link: Wall Street's Reaction To Salesforce's Earnings

“Salesforce was engulfed in takeover rumors late last month when Bloomberg reported on an approach of an unnamed suitor that was not Microsoft, for the company. Bloomberg also reported earlier this month that Microsoft was evaluating a bid for Salesforce, but said no talks between the two companies were taking place. Both reports sent shares of Salesforce sharply higher,” Faber said.

The talks between the companies ended in early May and it was not expected they would resume.

Microsoft CEO Satya Nadella “was said to be somewhat reluctant to pull the trigger on a deal of such size and consequence for his company,” according to the report, and Nadella had only been in the CEO role for 18 months.

The deal structure was said to include a “significant portion” of Microsoft’s $95 billion cash reserve and Benioff might have been able to roll his 5.7 percent stake in Salesforce into Microsoft shares along with a management position. Other shareholders would have received cash.

Salesforce.com, inc. recently traded at $74.78, up 2.56 percent.

Posted-In: CNBC David FaberCNBC News Rumors M&A Tech Media

 

Related Articles (MSFT + CRM)

View Comments and Join the Discussion!
Loading...

Partner Center

Loading...