Update: Salesforce confirms Slack acquisition

Looking to boost its enterprise tools, the sales and marketing cloud software giant is acquiring Slack

Salesforce will acquire messaging platform Slack for US$27.7 million. The sales and marketing cloud software platform has confirmed the acquisition, with the news it has entered into a definitive agreement to buy the messaging platform. Slack will become the new interface for Salesforce Customer 360.

Salesforce said that combining Slack with Salesforce Customer 360 will create the operating system for the new way to work, creating a unified platform for connecting employees, customers and partners with each other and the apps they use every day, all within their existing workflows.

Slack has struggled to fully capitalise on the switch to remote working during the COVID-19 pandemic in the face of fierce competition from Microsoft Corp’s Teams and other workplace apps. Slack shares ended trading in the US on Tuesday, when news of the potential acquisition was first revealed, at US$29.57, well below the US$42 high they reached on their first day of trading last year.

The confirmation comes ahead of Slack's quarterly earnings reports due on 9 December. After The Wall Street Journal first reported that the two companies had held deal talks., Slack Technologies shares jumped 24 per cent to US$36.58, giving the company a market capitalisation of US$21 billion, while Salesforce fell 2.7 per cent

Slack’s app has been installed about 12.6 million times so far this year, up approximately 50 per cent from the same period in 2019, according to analytics firm, Sensor Tower. However, the economic fallout of the virus outbreak has forced Slack to give discount and payment concessions to many of its customers who have had to make cost cuts, the firm noted.

Salesforce annual revenue has improved against forecasts earlier in the year as the pandemic has boosted demand for its online business software that supports remote work and commerce. Salesforce spent more than US$16 billion last year in acquisitions to stay ahead of its main rivals, Oracle and SAP.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page, or join us on Facebook: https://www.facebook.com/CMOAustralia.


Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

Invest and earn with Coinbloc .us. Guaranteed Weekly ROI, early signals, fast withdrawals among others. I recommend Coinbloc .us as on...

Hans Jensen

Explainer: What marketers need to know about cryptocurrency

Read more

Investment decisions are a big deal, so why not get some guidance? You can day-trade cryptos, BUY and HOLD and evaluate the assets with f...

Dave Sigurd

Gartner: Digital isn't enough of a superpower for CMOs anymore

Read more

I normally don’t feel comfortable investing online but because the company I worked for downsized due to the pandemic and I was one of th...

Dave Sigurd

CMO's top 8 martech stories for the week - 9 June 2022

Read more

Investment decisions are a big deal, so why not get some guidance? You can day-trade cryptos, BUY and HOLD and evaluate the assets with f...

Dave Sigurd

Creating a marketplace for wellness

Read more

A solution for an retail industry data extraction. https://e-scraper.com/usefu...

"e-Scraper" Data Extracting

​Catchoftheday launches fee-based online shopping club

Read more

Blog Posts

3 things marketing leaders need to do to effectively lead hybrid teams

Many marketing leaders are scrambling to give their people more flexible work. And they need to: PWC’s Future of Work report showed 90 per cent of staff want some form of hybrid or remote workplace.

Scott Stein

Leadership consultant

2 hidden ingredients for leadership success CMOs need to know

Your success as a senior marketing professional has much in common with your success as a leader. Both marketing, and leadership activities, depend on building trust, encouraging action, and reliably fulfilling promises that have been made.

Gerard Penna

Leadership advisor, coach

How shifting economic trends are impacting digital media

Between further interest rate rises, inflation​, empty shelves, extortionate lettuce prices, supply chain issues and the barely believable events in Eastern Europe, the past six months there’s been a cacophony of environmental factors.

Kieran Reed

Senior digital manager, Alpha Digital

Sign in