Microsoft Corporation (NASDAQ:MSFT) and Salesforce.com Inc (NASDAQ:CRM), a global cloud computing company, have called off talks after Microsoft’s $55 billion offer was rejected by the company. Salesforce Chief Executive Mark Benioff had reportedly expected a price tag in the range of $70 billion.
Microsoft has dropped its bid for the company while Salesforce is still in talks with Amazon, Oracle, SAP and IBM. Microsoft did not opt out of the deal due to the cost as the company has $95 billion in cash and other cash equivalents. In 2011, Microsoft acquired Skype for $8.5 billion deal, and the latest one could have turned out to be the largest acquisition of it was successful.
This year, Salesforce is looking at a revenue of $7 billion, while the company posted a revenue of $1.51 billion in the first quarter. Salesforce is one the companies in the cloud computing market that is performing well. Salesforce’s software helps companies to organize and track sales calls and leads. Microsoft CEO Satya Nadella stated that it wasn’t the high price, but the sheer price of the deal that made him reluctant to go with it.
SAP’s top executive stated that Microsoft has opted out of the negotiations. Salesforce shares went up to $74.16 on the New York Stock Exchange while Microsoft’s shares were down by one percent to $46.93 on Nasdaq. San-Francisco-based Salesforce is headquartered in San Francisco, and specializes in customer relationship management (CRM) product, and has also entered into commercial applications in social networking.
The company was founded by Benioff in 1999, a former Oracle executive. The company went public on the New York Stock Exchange in 2004, using the stock symbol CRM and raised $10 million. As on Thursday, the company was valued at $48.4 billion, and reported a profit for the first time in seven quarters this week.[ Via ]