World of Salesforce professionals is full of strange rumours and gossips. The greatest deal of the century is the main subject of most discussions.
Back in 2014, Bill McDermott, CEO of SAP SE (a multinational company that produces enterprise software and based in Germany) had a strategy talk with CEO of Salesforce (Marc Benioff). According to rumors, the topic of discussion was a possibility of alliance between these two companies.
The negotiations were completely private, but people with knowledge of the matter say that it was also about a potential acquisition of Salesforce by software corporation from Germany.
Today, when rumors about these negotiations are a subject of matter, a spokesman of SAP made a statement. Nicola Leske said SAP never had such intention and does not have it today for sure. A spokesman of the German based corporation called Salesforce “a 20-th century solution for 21-st century business”. Interesting that a spokesman for Salesforce in San Francisco declined to comment on the situation.
Salesforce’s market capitalization is over $40 billion. Today the company works with financial consultants (according to Bloomberg report). The purpose is to analyze a possible takeover of Salesforce by some anonymous aggressor. Work with financial advisers started after a recent overture from another company (not SAP).
It is hard to determine are there any discussions about takeover between Salesforce and SAP today. Salesforce is a world giant among software companies and its takeover would become one of the greatest that ever happened. If some company acquires Salesforce, it will automatically become a leader in the market of CRM software and cloud computing.
The acquisition of Salesforce will be beneficial for its rivals. One of them, Oracle Corp., will benefit from disruption in the market caused by the takeover.
Because of some slowing in CRM business, Salesforce made an expansion into other spheres, like analytics and digital marketing, along with some acquisitions and releases of new products. All that together helped to increase revenue of the company in 32%.
Other software giants, like Oracle or Microsoft did the same steps.