Cross Microsoft off the list of potential Salesforce suitors -- and maybe everyone

Microsoft considers Salesforce's almost $US50 billion market valuation too high, report says

Rumors of a potential Salesforce acquisition have been flying for over a week now, including the recent suggestion that Microsoft was a likely contender. According to a new report, however, it now looks like that's not the case.

Microsoft considers Salesforce's almost $US50 billion market valuation too high and has no plans to make a bid for the cloud-software company in the near term, Reuters reported late on Thursday, citing unnamed sources. It may, however, reconsider the possibility in the future, the sources reportedly said.

Earlier this week, SAP - also widely considered a contender - said it had "zero interest" in making such an acquisition.

A Bloomberg report last Wednesday was what originally set off the wave of speculation about the possibility of a Salesforce acquisition, which could be the largest ever in the software industry. Sparking that report was news that Salesforce had been approached by a potential acquirer and hired a team of financial advisers to help it field such offers.

Both Microsoft and Salesforce declined to comment.

"Nobody is buying Salesforce," said Denis Pombriant, managing principal at Beagle Research Group.

Rather, the company has engaged bankers to help it figure out a strategy to buy a small part of UK-based enterprise-software maker Sage Group, Pombriant believes. Based on an invitation he received for a "fireside chat" next Wednesday, in fact, he expects the two companies' CEOs -- Marc Benioff of Salesforce and Stephen Kelly of Sage -- to explain the details soon, he said.

Sage Group could not immediately be reached for comment.

As an acquisition target itself, Salesforce is attractive but too expensive to buy, Pombriant said. "Salesforce is pricey, its nearest rivals have invested scads of money in building their own cloud capabilities, and the time to acquire the company is long passed."

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesCustomer Relationship ManagementapplicationsMicrosoftSalesforce.comsoftwarecloud computinginternetMergers and acquisitions

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Katherine Noyes

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?