BREAKING: Slack Shares Skyrocket 38% on Report of Possible Salesforce Purchase

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Salesforce.com Inc. is in advanced talks to buy Slack Technologies Inc., according to people familiar with the matter, a deal that would unite a giant in business software with a buzzy newcomer on a mission to replace office email.

The companies could reach a deal within days — possibly by the time Salesforce reports its third-quarter financial results Tuesday, some of the people said. Slack, with a market value of more than $17 billion as of Wednesday morning, would be Salesforce’s largest acquisition ever. There is no guarantee the companies will reach an agreement.

Salesforce is the world’s biggest seller of software that companies use to manage their customer relationships. Started 21 years ago and run by co-founder Marc Benioff, it was a pioneer in providing software via the cloud through a subscription rather than a costly upfront installation. Benioff, chairman and chief executive, is one of Silicon Valley’s highest profile executives, a status he burnished with the purchase of Time magazine.

Salesforce has a market value of some $230 billion after years of big gains and its rich stock price—which trades at nearly 100 times its trailing-year profits—gives the company a valuable currency to use for takeovers.

Reprinted from The Wall Street Journal. The copyright is reserved by the original author.