Here’s Why Salesforce May Sell Out to Oracle

Is Salesforce for sale? There are credible rumors that suggest the customer relationship management (CRM) company is getting ready to put itself on the open market. News reports suggest Salesforce is working with financial advisors to assess takeover offers. That happened, swirling reports say, after one major company made a buyout offer.

Whether itEUs true or not, Salesforce stock is responding. The stock prices climbed 11.6 percent on Wednesday, which values the company at about $49 million. The question is, who would be interested in bringing the growing CRM firm into its fold?

Right Time To Sell

Oracle, IBM, Google, SAP and Microsoft are among the names analysts are tossing around as possible suitors. In fact, it may have been OracleEUs move to raise $10 billion that started all the rumors and Oracle could be the frontrunner in the race to acquire Salesforce.

We caught up with Charles King, principal analyst at Pund-IT, to get his thoughts on the rumors and who would be the most likely suitors. He told us it certainly seems that Salesforce has put itself on the block. If not, it would be easy enough for the company to say that's not the case, he said. As he sees it, the public nature of events suggests that either the company is trying to attract market interest and/or competing bids, or that a deal that is in process leaked out.

EUAs to its reasons behind this, the company's management likely determined that this is simply the right time to sell,EU King said. EUMarket interest in technology is high -- just see the goofy valuations achieved by startups with few customers and no profits -- and interest rates are phenomenally low, easing the burden on borrowing enough cash to make a deal work.EU

King said one could also argue that Salesforce has gone...

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