Slack Technologies (WORK) Skyrocketed to $40.70 per share on acquisition news


A possible sale of Slack to Salesforce; shares of SLACK are roaring at an all-time high range as investors keep an eye.

Shares of Slack Technologies, Inc. (WORK) are on a roll with the potential acquisition news roaming in the market. Reportedly, has finally decided to acquire Slack Technologies.

Slack Technologies is the pioneer of software that provides a new form of workplace communication. Since the company went public in mid-2019, the popular cloud-based software firm, Salesforce has its eyes on Slack.

It seems that the time has arrived for Salesforce to take a step ahead and acquire Slack. After a stunning market performance and continuous growth, Slack has a market cap of 23.33 billion.

After reported by the Wall Street Journal, the merger deal seems clearer than ever. With this news, Salesforce’s stock went down 5.37% on Wednesday. Whereas, Slack shares surged up to 37.59%.

SLACK shares are trading at its 52-week high at $40.99. The stock kicked off the day at $29.58 before closing the day at $40.70. The trading volume rallied to 140 million compared to the average volume of 16 million.

Salesforce is in talks with Slack, however, both parties have not declared any statement on the potential merger. This has created rigorousness in the market as this deal is considered to be a big breakthrough in the cloud industry.

This deal is directly targeting Microsoft’s Teams. Wedbush analyst, Dan Ives mentioned that this deal will be a major shot at MS Teams and give a strong message to Microsoft. Slack which has already created competitive hurdles for Microsoft will then be dealing with Salesforce as its bigger competitor.

As Microsoft has already shown altercation towards Salesforce, things will become interesting if the acquisition happens in the near future. Salesforce is offering specialized customer relationship management software, with its Dynamics 365 CRM service.

This is not only a big deal for the Windows firm, Slack acquisition will set off a new wave of software firm acquisitions in the tech industry in the coming year.

Potentially, the merger agreement can be consisting of cross-selling of products into user bases of each other (the combined company). This will introduce a new channel of growth for both companies. Where Salesforce products are popular among mega corporation, Slack has its own market share in fast-growing startups.

The reason why Slack investors find this a good deal is because it will give a bigger platform for the company to grow. They see a potential increase in their wealth with the merger in a firm worth 224.6 billion.


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