The Slack-quisition is official: we're looking at what it means for investors
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PFWTM are really familiar... On Monday, we wrote that Salesforce was in talks to buy Slack for more than $17B. On Tuesday, Salesforce confirmed it's buying Slack for $27.7B — its biggest splurge ever. Today, we're looking at what happens to your shares post-acquisition.
- For each share of Slack stock that you own, you'll get $26.79 in cash and ~7.8% of a Salesforce share.
- ~$44: The price of Slack's stock yesterday — it was trading at $29 last week before the news.
- ~$44: The value you'd get if the acquisition happened yesterday: $26.79 + $17.16 (the fraction of a Salesforce share, ~$220). The market almost perfectly priced in Slack's acquisition price.
Big BTW... The deal still has to get OK'd by shareholders and regulators. We don't know what Salesforce's stock price will be when/if the deal goes through, but that'll affect the value of what Slack shareholders end up with.
- For Slack shareholders, it seems like a win. Slack's WFH sales gains pale in comparison to Zoom's, but its shares just got a big boost.
- For Salesforce shareholders, it seems like a loss. Some don't think this major splurge on unprofitable Slack makes sense — so the stock is down 14% this week.
Salesforce seems desperate to keep growing... and it's leaning on other companies to make that happen. The software giant has made 60+ acquisitions over the years. Salesforce and Slack both reported earnings on Tuesday (they coordinated — so cute). While Slack’s sales are growing nearly twice as fast as Salesforce’s, both saw a slowdown from the previous quarter.