rtmark
LearnBonds.com

Why Would Microsoft Corporation Buy Salesforce?

microsoft corporation (NASDAQ:MSFT)

Microsoft Corporation (NASDAQ: MSFT) is reportedly considering a bid for salesforce.com, inc. (NYSE: CRM), an enterprise cloud computing solutions provider, according to Bloomberg reports.

microsoft

Shares of salesforce.com jumped 1.6% yesterday, amid speculations of a potential takeover by Microsoft. Meanwhile, no official announcement has been made by either company. Salesforce is currently working with two investment bankers, after being approached by prospective buyers. Microsoft shares lost 1.3% yesterday, and decreased over 3.2% in the last five days.

Potential Bidders

Earlier, analyst from the research firm, Credit Suisse, cited that the potential companies who would show interest to acquire Salesforce would be Google Inc (NASDAQ: GOOGL), Microsoft Corporation (NASDAQ: MSFT), SAP SE (ADR) (NYSE: SAP) and Oracle Corporation (NYSE: ORCL).

To see a list of high yielding CDs go here.

However, SAP and Oracle Corporation reported that they are not interested in a bid for Salesforce. Meanwhile, Google is expected to be a potential bidder for Salesforce, according to Philip Winslow, the analyst from Credit Suisse. Winslow said that salesforce can provide Google a huge “installed base of enterprise applications”. However, the analyst noted that Google previously sought to acquire companies with huge talent and strong engineering capabilities, while salesforce might not be able to offer such qualities.

Why Microsoft, and how will it benefit

Salesforce accounts for 16% market share in the customer relationship management market, while Microsoft holds 7% market share, based on Gartner reports. Integrating Salesforce products into Microsoft would help Microsoft to increase its market share in several software verticals, through Microsoft’s Windows Enterprise, Azure and other software-as-a-service products, says Alex Cho, an analyst from Seeking Alpha.

Microsoft CEO, Satya Nadella is shifting Microsoft’s strategy to cloud and mobile software provider, and is even open to work with competitor’s products. Last year, Microsoft and Salesforce has reported their partnership for joint solutions which includes Power BI for Office 365, Excel integrations with Salesforce and Salesforce1 for Windows.

Microsoft has a strong cash position of $85.4 billion, and Salesforce has a market value of over $45 billion. Satya Nadella has previously headed the Microsoft’s cloud division and will be able to successfully integrate acquisitions of such a big scale. Moreover, his openness to work with competitors and turn them into partners, has helped Microsoft to scale up its cloud business.

As a result, Microsoft’s cloud business posted a year on year increase of 106% for the quarter ending on March of 2015. Satya Nadella expects the firm’s cloud business to reach $20 billion in 2018, as compared to the present annualized rate of $6.3 billion.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar