Salesforce’s stock price jumped over 10% today to an all time high (the Nasdaq rose a little over 1%). The company’s market cap rose $743 million, to $8.06 billion. Why the big jump? There is no public information or news emerging to support the increase.
Our sources in private equity say it was fueled by whispers of Google acquisition talks. And short sellers (Salesforce has a lot of them) may have moved to cover their positions, magnifying the rumor effect. 2.92 million shares traded today, about 55% more than average.
A week ago Google and Salesforce announced broad integration of Google Apps (Docs, Calendar, Gmail, and Gtalk) and Salesforce’s online enterprise apps, which, our sources say, may just be a test of a more serious relationship.
If Google were to acquire Salesforce (and to be clear, we’re hearing nothing other than the private equity based rumors) it would likely be a cash deal to avoid earnings dilution. Salesforce is trading at an impressive 319 times forward earnings, compared to Google’s 32.66. Cisco and Oracle are said to be interested as well, but not Microsoft.
Here’s the interesting thing about the rumor - everything we hear from Silicon Valley sources says it isn’t happening. We’ve heard Google’s corporate development team is actually knee deep in another, much smaller transaction. And why put so much time into ironing out the elaborate business development deal announced last week if it’s only a prelude to an acquisition?
Salesforce’s Q1 financials will be announced on May 6.
Any thought to that you might be part of a whisper campaign to manipulate stock price?!?
speaking of rumors, i hear salesforce.com is working on a revolutionary new concept that will throw software-as-a-service totally out the window - it’s called “software as a product” and sources say it involves faster software, less downtime, access from anywhere - and you own the data! oh and there’s no monthly fee, either. i can’t wait to try it out.
CD - Yep. Although this is coming from independent sources, and its describing something that already happened.
I remember a few postings back, can’t recall which date, where someone mentioned that most great companies, after acquisition, lose their edge on the marketplace? I forsee this with Google’s acquiring Salesforce.com.
If everyone denies it, doesn’t that mean it’s true?
Comment on TechChruch post ‘Salesforce stock increase’
Ok, next time I’ll send you some chocolate from my german chocolate gift service http://www.heidelstones.de (I started it a couple of years ago in Germany before I moved to Canada)
p.
Peter - actually, I don’t like chocolate that much. Weirdest random delivery ever to the office - Omaha steaks, no card or note about who sent.
Excellent this video comment of Michael
I find it interesting that Facebook has a valuation of 15B yet a REAL company like SalesForce.com has one that is but half of this.
Jon
http://woodmarvels.com - Create Unique Memories
Actually this is too funny because my Family in Germany runs a butcher business in the third generation. I’ll have to send you pics at some point (with a steak attached). p
Salesforce Rocks!!!! Can’t wait for it to be Googled.. JB @2thenextlevel.com
Unless those items have the company logo on them - which make them promotional material, isn’t that considered a bribe - to write about them?
regarding the large chocolate bars, steaks, kites, etc.
I can’t imagine that Google would acquire a high cost provider who’s main competence is sales. Google could market a SugarCRM-based service and effectively put SFDC out of business.
lawrence - probably.
It is ORCL. This rumor has been on for a while. SF people have been spotted in Redwood Shores. ORCL people have been spotted in downtown SF.
Marc Benioff has been rumored to replace Uncle Larry. He needs to be groomed into the ORCL way, first.
ORCl CRM on demand is stalling. And this is try number 3 on the CRM arena. They need to do something drastic.
video commenting from my bed
I can see Oracle buying Salesforce.
It would be foolish for GOOG or Cisco to buy Salesforce when they could buy SugarCRM. And let’s not forget Zoho.
I would bet my prized donkey on this one.
Loic…glad you at least brush your teeth before making these clips (faut te raser la prochaine fois).
Here’s another Salesforce rumor: they are working on a CRM system that is something more than candy for sales people:
http://www.youtube.com/watch?v=UOnF6FQYH1g
There is an error on your article…
You mention: The company’s market cap rose $743 million, to $8.06 billion.
That would be more than 1000% gain on one day, but you mention 10% on the articlle…
Eduardo
99% of percentages are wrong! But wouldn’t 1000% be $80 billion? Or are you saying that the actual market cap should actually be only $74 million? Still over-priced…