Is Slack Technologies Inc. about to be bought by Salesforce.com Inc.? There is no official evidence of the fact but Wall Street Journal recently published a report saying that Work stock has found itself to be in an advantageous position after talks regarding its possible sale to Salesforce.com Inc has taken ground.
According to the trusted media platform, the long-term software firm, NYSE: CRM will pay a hefty amount for the Vancouver-based Slack Technologies, Inc. However, the market went into a rage after this news piece got out. Work stock saw a whopping 37% leap in Slack Technologies Inc. value. This positively affected the company’s valuation that now stands over $23 billion. This is far more than the predicted valuation of the company made by WSJ at $17 billion.
Bidding War For Work Stock Reveals Buying Opportunity
Work stock previously closed at $40.70 and the share price stands at $39. The premarket trading before Black Friday led traders to believe that the company will be trading at a discount of 4% and the current share price.
Short-term traders are going through a massive dilemma regarding Work stock right now. Their major question is: has Salesforce’s acquisition of Work stock already begun in the price? Or is the potential correction moment in the coming future a buying opportunity?
To answer this question, long-term investors will wait for the entire deal to close before reassessing investment in both these companies. However, there is a potential buying opportunity for short-term investors as well, reports analysts. And the main reason for that is the bidding war to acquire Slack Technologies Inc.
According to recent WSJ reports, Microsoft, a Slack rival has also shown interest in the bidding war for Work stock. Alphabet is also moving closer to bid for Slack Inc. Analysts are of the opinion that the longer the list of potential buyers, the higher the value of Work stock will rise.