Salesforce.com, Inc. (NYSE:CRM) buyout rumors are making rounds and several companies have been cited as potential buyers. However, Salesforce’s market value of nearly $44 billion means that only a few technology companies can successfully bid for it. Salesforce has reportedly tapped advisers to explore its sale.
Acquisition of Salesforce could help a number of companies whose reach in the cloud is currently small to raise their profile in the market segment.
Difficulty in closing a deal
Although several potential buyers have approach Salesforce.com, Inc. (NYSE:CRM) for a deal, there is no guarantee that a transaction will be closed. One of the major reasons acquisition of Salesforce may turn out to be complex is the costs involved. It requires a deep pocket to take over the enterprise cloud software vendor.
If case of a deal, Salesforce.com, Inc. (NYSE:CRM) acquisition would the largest software buyout in history.
There is no guarantee, but it is possible that Salesforce could come under the umbrella of Oracle Corporation (NYSE:ORCL), which is actually one of its partners. On the matter of culture and relations, Salesforce’s CEO, Marc Benioff and Oracle’s Larry Ellison get along very well. Oracle’s $195 billion value means that it can successfully digest Salesforce in a deal that could combine cash and stock.
With a market cap of about $172 billion, Salesforce.com, Inc. (NYSE:CRM) buyout is doable deal for the International Business Machines Corp. (NYSE:IBM). Acquisition of Salesforce, which is a formidable force in the cloud software market, would significantly boost IBM’s cloud campaigns.
Microsoft in cloud campaign
Microsoft Corporation (NASDAQ:MSFT)’s cloud campaigns are obvious and there is no reason the company would not dig into its cash stockpile to bring Salesforce under its armpit. Additionally, Microsoft’s Satya Nadella and Benioff have recently shown that they can work together. Microsoft is a $403 billion company, which makes Salesforce a palatable buyout.
Amazon needs to grow AWS
Amazon.com, Inc. (NASDAQ:AMZN) is already the clear leader in the cloud infrastructure market, but the company is still hungry for more growth as it looks to expand its AWS abroad. There are many things that make Salesforce an interesting asset for Amazon. On the issue of cost, Salesforce is clearly an expensive asset but not completely out of reach for Amazon.
Cisco Systems Inc (NASDAQ:CSCO) is well-known for its cloud and Internet of Things ambitions. With a market cap of $148 billion, Cisco can attempt to join forces with Salesforce.com, Inc. (NYSE:CRM).
Google case unclear
It is currently unclear whether Google Inc (NASDAQ:GOOGL) is really interested in betting a heavy price on enterprise cloud, but Salesforce would be a crucial asset for Google’s enterprise software campaigns. Google’s market value of $374.8 billion allows it to pursue Salesforce with high degree of success.
Apple has the resources
Apple Inc. (NASDAQ:AAPL) is also mentioned among possible Salesforce.com, Inc. (NYSE:CRM) buyers, mainly because Tim Cook has shown a liking for enterprise. On the issue of cost, Apple has the resources to close a deal with Salesforce if it so chooses.