Salesforce Serves Up Almost $28B To Buy Slack

Salesforce, the CRM powerhouse that recently surpassed $20 billion in annual revenue, announced yesterday that it is wading deeper into enterprise social by acquiring Slack in a $27.7 billion megadeal:

Salesforce co-founder and CEO Marc Benioff didn’t mince words on his latest purchase. “This is a match made in heaven. 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,” Benioff said in a statement. Slack CEO Stewart Butterfield was no less effusive than his future boss. “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. Personally, I believe this is the most strategic combination in the history of software, and I can’t wait to get going,” Butterfield said in a statement.

I’m not sure that this is a win for Salesforce. I’ve been seeing examples of companies that had been using Slack dropping it for Microsoft Teams when Office 365 gets rolled out in their environment. And that’s been happening for at least a year or more. Thus It’s always been my sense that Slack has been circling the drain for a while now. And Salesforce might have massively overpaid for a company with a diminishing value proposition. But maybe I’m wrong about this and there’s something that Slack offers that is worth almost $28 billion. Though I don’t know what that could be. But I guess we will see in the next year or two.

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