Salesforce Considers Acquisition of Informatica; Stock Prices Drop 5% Amid Negotiations

Salesforce Inc., a top company that makes software for the internet, saw its stock price go down by 5% on Monday because there’s talk that they might buy another company called Informatica, which helps manage data.

The Wall Street Journal and Reuters reported this. The deal might be announced soon, and people think Salesforce might pay less than what Informatica’s stock was worth on Friday, which was $38.48.

If this happens, it would be Salesforce’s biggest purchase since they bought Slack for nearly $28 billion in 2021.

They’ve bought other big companies before, like Tableau for $15.3 billion in 2019 and MuleSoft for $6.5 billion in 2018. Salesforce didn’t want to talk about these reports, and Informatica hasn’t said anything either.

Response from the Market and Consequences

When people heard about this possible deal, Informatica’s stock went down by 9% on Monday.

Informatica shares fall 9% amid market concerns over revenue streams and growth pace.

Salesforce’s CEO, Marc Benioff, thinks this deal would make Salesforce better at integrating and managing data, which is important for their business.

However, some people worry that Informatica might not be making enough money, which is why their stock went down.

Analysts from Bloomberg Intelligence and companies like Oppenheimer and Evercore ISI think this deal could lead to more big companies joining together in the software industry, which might get attention from regulators.

Tech Trends

Even though Salesforce’s stock went down because of this news, other big tech companies like Nvidia, Meta Platforms, Microsoft, Alphabet, and Amazon saw their stock prices go up before the market opened.

Acquisition would be Salesforce’s largest since Slack, marking a significant addition to acquisitions. (Credits: Slack)

This shows how the tech industry can be unpredictable, especially with things like world events affecting it.

The semiconductor industry, which makes computer chips, got a boost from government help in the U.S., which is important because of all the challenges in getting supplies from around the world.

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
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