3 ms·

slack market cap 20b and at the time of their IPO only half the stock was listed salesforce revenue 20b are they really going to pay 40b for something that ma

slack market cap 20b and at the time of their IPO only half the stock was listed salesforce revenue 20b are they really going to pay 40b for something that makes 400m a year? I get they're paying in stock but forgive me for not understanding the synergies here

1123581321 6y ago
Some possibilities: Slack revenue will increase on its own. Salesforce integrations and cross-sell will improve. An app discovery service that offers competitors can be brought in-house and managed. It could certainly be a mistake, though.
- awinter-py 6y ago
  slack projects 4b revenue w/in a few years so yeah, maybe SF is drinking the same kool aid? even in the cross-sell case, 'slack doubles the value of salesforce' is a stretch I suppose slack has way more customers so if even a few of them convert, salesforce grows tremendously? but the downside is this pushes SF into the freemium market. 'we're buying slack to help us grow our free tier' isn't ultra compelling.
  - 1123581321 6y ago
    I could see that. How would you value Slack as a subsidiary of a larger B2B SaaS if all of those downsides are substantial?
    - awinter-py 6y ago
      if the future of salesforce is workflows, slack provides a lot of data for workflows (assuming they're allowed to use it). if salesforce has a substantially more developed marketplace for plugins, SF can help slack get there too; not sure how rev-share works for slack plugins today.
paxys 6y ago
FYI market cap doesn't just take into account how many shares were listed on IPO day. It's the total value of all outstanding shares.
- awinter-py 6y ago
  oh I didn't know that, thanks
skinnymuch 6y ago
Slack’s market cap is above $20B because of the news. It went up 35%. A majority of the premium to buy it is priced in now. Likely the acquisition will be around $25B.

3 ms·

slack market cap 20b and at the time of their IPO only half the stock was listed salesforce revenue 20b are they really going to pay 40b for something that ma

by awinter-py 6y ago

1123581321 6y ago
Some possibilities: Slack revenue will increase on its own. Salesforce integrations and cross-sell will improve. An app discovery service that offers competitors can be brought in-house and managed. It could certainly be a mistake, though.
- awinter-py 6y ago
  slack projects 4b revenue w/in a few years so yeah, maybe SF is drinking the same kool aid? even in the cross-sell case, 'slack doubles the value of salesforce' is a stretch I suppose slack has way more customers so if even a few of them convert, salesforce grows tremendously? but the downside is this pushes SF into the freemium market. 'we're buying slack to help us grow our free tier' isn't ultra compelling.
  - 1123581321 6y ago
    I could see that. How would you value Slack as a subsidiary of a larger B2B SaaS if all of those downsides are substantial?
    - awinter-py 6y ago
      if the future of salesforce is workflows, slack provides a lot of data for workflows (assuming they're allowed to use it). if salesforce has a substantially more developed marketplace for plugins, SF can help slack get there too; not sure how rev-share works for slack plugins today.
paxys 6y ago
FYI market cap doesn't just take into account how many shares were listed on IPO day. It's the total value of all outstanding shares.
- awinter-py 6y ago
  oh I didn't know that, thanks
skinnymuch 6y ago
Slack’s market cap is above $20B because of the news. It went up 35%. A majority of the premium to buy it is priced in now. Likely the acquisition will be around $25B.