Slack surges 7% on report that Salesforce takeover will be announced Tuesday afternoon at a premium
- Slack jumped as much as 7% on Monday after CNBC reported the company's deal with Salesforce will be announced after markets close on Tuesday.
- Salesforce is set to price Slack at a premium to its current stock price. The workplace-communications company has rallied roughly 64% since the first reports of a Salesforce deal.
- The acquisition is set to be Salesforce's largest ever and among the largest in the sector.
- Watch Slack trade live here.
Slack rallied as much as 7% on Monday after CNBC reported Salesforce's acquisition of the company will be announced after markets close on Tuesday.
Salesforce's takeover will price the workplace-communications company at a premium to its current share price and consist of a half-stock, half-cash deal, according to the report. Slack surged last week on initial reports of the deal. A premium stands to lift shares even higher.
Slack traded with a market cap of more than $24 billion on Monday, teeing the Salesforce acquisition to be one of the industry's largest. The price tag could surpass the $27 billion Microsoft paid for LinkedIn in 2016.
Even without paying a premium to Slack's current price, the deal is set to be Salesforce's largest ever.
Salesforce slipped as much as 4.6% on the news. The company's stock similarly fell on Wednesday when talks of a deal were first reported. Salesforce is expected to report quarterly earnings on Tuesday.
The jump places Slack shares at a new record. The company began trading on June 20, 2019, with an opening price of $38.50. Shares are up roughly 64% since the first reports of a Salesforce deal emerged on Wednesday.
Slack traded at $42.05 per share as of 9 a.m. ET Monday, up roughly 93% year-to-date. The company has 14 "buy" ratings, 11 "hold" ratings, and three "sell" ratings from analysts.
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