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Slack spikes 32% following report of potential takeover by Salesforce

Ben Winck   

Slack spikes 32% following report of potential takeover by Salesforce
Stock Market1 min read
  • Slack rocketed as much as 32% on Wednesday after The Wall Street Journal reported that Salesforce was in talks to acquire the workspace-communications company.
  • Such a deal would likely value Slack at more than the $17 billion market cap it held before shares jumped.
  • There's no guarantee the talks will lead to a takeover, and Salesforce could target another company for an acquisition, sources familiar with the matter told The Journal.
  • Salesforce shares slid as much as 4% on the news.
  • Watch Slack trade live here.

Slack leaped as much as 32% on Wednesday following a report of a potential acquisition by Salesforce.

The corporate-software company was in talks to buy Slack, The Wall Street Journal reported, citing people familiar with the matter. Such a deal would likely value Slack at more than the $17 billion market cap it boasted before shares spiked. That acquisition would also be Salesforce's largest yet.

There's no guarantee a deal will be reached, and Salesforce could target another company for a takeover, sources told The Journal.

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The jump placed Slack shares at their highest since early June. The company made its market debut on June 20, 2019, with an opening price of $38.50.

Salesforce shares fell as much as 4% on the news.

Slack traded at $38.08 as of 11:55 a.m. ET, up 42% year-to-date. Slack has 14 "buy" ratings, 10 "hold" ratings, and three "sell" ratings from analysts.

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