Slack Technologies Inc. is under the microscope as WORK stock recently rose by 44.73% in the past week. This happened as WORK stock price rose to $40.67 PS from $28.10 PS within a week. Let’s look at the reason why.
Analysts are of the opinion that the biggest reason for this price jump in Slack Technologies Inc. stocks is because of its rumored sale to Salesforce. Both these companies have been holding talks and discussing a potential deal that could be announced any time next week.
WORK Stock Acquisition Could Be Beneficial For Salesforce
Investors believe that Salesforce Inc, an American cloud-based software company based in California that provides customer relationship management service is interested in buying out Slack Technologies Inc. However, there is no official news on this deal getting finalized. It is even possible that it falls through. 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.
Following this report, WORK stock currently has $22 billion worth of market value. Also, this deal will possibly be Salesforce’s biggest deal in their company’s history.
Expert analyst from Morningstar, Dan Romanoff mentions that this sale could be strategically a sound decision on the part of the company. Acquisition of Slack Technologies Inc. could lead to a lot of direct exposure to remote work environments and collaboration. It will also lead the company to reconnect with its customers with a fresh take. Moreover, if the deal goes through Salesforce could level up as a competitor for Microsoft.
According to a recent WSJ report, 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.