One company is emerging stronger in 2020 that you should know about
Business technology software platform Slack Technologies, Inc. (ticker: WORK) is seeing a rise in price as it was announced on December 1 that Salesforce (ticker: CRM) was officially buying this company. Prices starting rising last week on November 25 right before the Thanksgiving holiday.
This year the price of Slack has risen 40% as of Friday afternoon. Slack allows office workers to text each other in a private chat room. The addition of this tool to Salesforce will make this company much stronger and offer more tools to the workforce.
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The stock information for Salesforce and Slack is dated December 1, 2020, at the close of business. Information on the stock price may vary when you do your own research.
Salesforce’s offer. An offer of $27.7 billion was made to buy Slack which had its stock IPO on June 20, 2019, with an opening price of $38.50. Slack has had a net loss of $147.6 million during the first two quarters of this year. Due to their poor performance, they were likely a take over target.
The co-founder and CEO of Salesforce Marc Benioff said, “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.”
What does Salesforce provide. The company is a cloud computing solution system that focuses on customer relations management (CRM) in businesses. Salesforce stores data, monitors leads and progress, and gains insight through analytics. This company also offers social media management tools for users. The CRM system enables users to send personalized customer service and support. Approximately 150,000 companies use Salesforce as their CRM system. Salesforce was founded in 1999 with headquarters in San Francisco, California.
Writer’s Recommendation. Salesforce is already a strong company and operates in many organizations as their main CRM system. Adding Slack only makes the stock more valuable and offer Salesforce more options to companies. An investor who owns shares of Slack, Salesforce gives investors $26.79 in cash and 0.0776 shares of Salesforce common stock for each share of Slack owned once the sale is complete.
Note: The writer owns shares of Slack.