Salesforce Vaults on Elliott Bid
Salesforce (NYSE:CRM) shares gained Monday following news that activist investor Elliott Management has reportedly made a multi-billion dollar investment in the software company, according to sources familiar with the matter.
News of the stake comes amid troublesome times at the company. Salesforce announced earlier this month it would slash 10% of its workforce and shutter some office space.
On the activist front, Elliott Management joins Starboard Value, which revealed an undisclosed stake in the company in October.
'Salesforce is one of the preeminent software companies in the world, and having followed the company for nearly two decades, we have developed a deep respect for [Co-Chief Executive] Marc Benioff and what he has built,' Jesse Cohn, managing partner at Elliott, told the Wall Street Journal.
'We look forward to working constructively with Salesforce to realize the value befitting a company of its stature,' Cohn also told the paper.
Last week, Salesforce reacted to the Federal Reserve raising interest rates the same as most technology companies -- its share price fell 34% over the last year. Worse, the slowing economy is only just starting to impact the company's growth outlook, with guidance for revenue in the fiscal fourth quarter disappointing investors. Consequently, the stock sank to a 52-week low on Dec. 22, and the risk of it falling below those lows again remains significant.
CRM shares jumped $3.93, or 2.6%, to begin Monday at $155.18.
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