Microsoft Corporation Reportedly Ready to Buy Salesforce With $55 Billion

Microsoft Corporation

Microsoft Corporation has been reportedly ready to buy Salesforce with $55 billion. However, the price is said to be $15 billion short, as Salesforce wants the acquisition price to be $70 billion, according to reports. Salesforce has been said to not seeing the offer as high enough for its management team.

Occupying a top position in cloud computing and customer relationship management software, is said to suit Microsoft, which target is to gain scale in such businesses. Launched 15 years ago, the company’s vision is to reinvent customer relationship management in the cloud, bringing in a fresh tech model.

Salesforce set the new cloud computing age and its CRM platform is now among the top in cloud ecosystem worldwide. Through the Salesforce products, businesses of all sizes can connect to customers in state-of-the-art methods using mobile, cloud technology and social innovations to sell and serve.

The San Francisco, California-based company received many employer awards and media accolades. Forbes named it the “World’s Most Innovative Company” from 2011 to 2014, while San Francisco Business Times called it the “#1 Largest San Francisco Technology Employer.” Salesforce is among Fortune’s “World’s Most Admired Companies,” as the “#1 in computer software,” while it is in the top 5 in MIT Technology Review’s 50 Smartest Companies.

According to CNBC who did not disclose the source of the report, the customer management firm is waiting for a $70 billion proposal from Microsoft Corporation. Microsoft CEO Satya Nadella was said to be reluctant for such a massive deal that could affect the entire Microsoft.

Those who were close to the dealing said there were conversations regarding CEO Marc Benioff of rolling 5.7 percent Salesforce stake to the Microsoft stocks and have him a management role in Redmond. Benioff had softened his stance on Microsoft after Nadella took the reigns on February 2014.

On May 2014, Microsoft and collaborated to bring the latter to Windows and Office. The Salesforce app was tested internally in October for Windows Phone and 8.1. Its official launch is set later this year. Earlier in the spring, Microsoft Corporation has been reportedly trying to buy Salesforce, which, according to people who were familiar with the situation, came to a point when the talks were really serious. However, no deal was made, and the two companies have not talked again, remaining distance on the price.

Bloomberg reported about takeover rumors late April of Salesforce by an unnamed suitor. It also mentioned Microsoft Corporation to be evaluating a bid for the company, but no talks happened between the two yet. These reports increased shares sharply. It was later heard that talks did happen between the two companies when, in early May, there were reports about them concluding it, but no expectations for another deal soon.

Microsoft Corporation is reportedly ready to buy Salesforce with $55 billion but was turned down by the other party. Had the latter agreed with the price, the technology merger would have been a blockbuster and the most huge for Microsoft Corporation. To date, Redmond’s biggest buy was Skype in 2011, at $8.5 billion. The Windows software maker acquired the Devices Unit of Nokia in 2013 at $7.2 billion, while the aQuantitative purchase lands third, pricing $6.3 billion in 2007.

Microsoft’s acquisitions are not all beneficial. As aQuantitative was popular during dot-com years, the company highly hoped that the Internet ad firm could make them more successful, but it turned out to be one of its bad purchases. Things were not good on online-ads for Microsoft.

The acquisition price dwarfs these deals, though it is said to be unlikely for Microsoft and Salesforce to be in talks again. Even though Microsoft Corporation was reportedly ready to buy Salesforce with $55 billion, it still fell short of the acquisition price.

By Judith Aparri

Windows Central: Microsoft reportedly tried and failed to acquire
CNBC: Microsoft, Salesforce talks fizzled over price: Sources
Ars Technica: Microsoft was’s $55 billion suitor, but talks are off
ZDNet: Chalk up aQuantive as another bad Microsoft buy

Photo courtesy of Michael Coté’s Flickr Page – Creative Commons License

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