Salesforce deal to buy Slack, expected to be announced tomorrow

Salesforce deals to buy Slack are expected to be announced on Tuesday after markets close, sources told CNBC’s David Faber.

The deal is expected to be about half cash and half stock, sources said. Salesforce is set to report quarterly earnings on Tuesday. As of Monday morning, Slack’s market cap was over 24 24 billion.

The stock rose 8% on Monday on this news. Shares of Salesforce are down about 1.5%.

Conversations between the two companies were reported by the Wall Street Journal last week and confirmed by CNBC, so Slake’s stock rose 38%.

Salesforce has made several major acquisitions in recent years, including a $ 6.5 billion deal in 2018 for its Mulsoft and a 15.3 billion deal with data visualization company Tablo.

The deal with Slack could be the biggest deal of software. IBM bought Red Hat for 34 34 billion in 2019 and Microsoft bought LinkedIn for 27 27 billion in 2016.

That could make Slack a stronger competitor to Microsoft’s Teft Communication product. This summer, the European Commission filed a complaint against SLSK or Micros.ft, alleging abuse of its dominant market position to eliminate competition for teams. Microsoft has said that teams have benefited during epidemics including video-conferencing capabilities that Slack lacks.

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