Microsoft isn’t willing to spend billions on the world’s number one CRM provider.
Microsoft isn’t interested in spending its billions for Salesforce, two people familiar with the matter told Reuters. Earlier this week, Bloomberg reported that Microsoft is considering a bid to acquire Salesforce after an unnamed company approached the giant cloud computing company.
However, according to the two people, who asked not to be named because the deliberations are said to be confidential, an acquisition of Salesforce would be too expensive for Microsoft. Salesforce’s current market valuation is pricey, one of the people said. But Microsoft could review a bid for Salesforce in the future, the other source added.
Microsoft and Salesforce didn’t comment on the report. Salesforce is the number one customer relationship management (CRM) provider in the world, according the research firm Gartner. The company’s shares have risen 48 percent in the last 12 months, a Thompson Reuters data revealed. By Friday afternoon, Salesforce had a $49 billion market capitalization.
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Microsoft, a late player in cloud computing market, is ramping up its cloud strategy under the leadership of its new CEO, Satya Nadella. Giant software companies Oracle and SAP are also reportedly interested in buying Salesforce.
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But the rumors were quickly dampened when SAP CEO Bill McDermott said that the company has zero interest in Salesforce. Meanwhile, Oracle CEO Safra Catz refused to comment on whether Oracle is eyeing on Salesforce.