Salesforce.com (CRM) purchases email marketing firm ExactTarget (ET) for $33.75/share in cash, a...


Salesforce.com (CRM) purchases email marketing firm ExactTarget (ET) for $33.75/share in cash, a total transaction value of about $2.5B. Salesforce.com expects the purchase to reduce FY14 non-GAAP EPS by about $0.16. Assuming a late Q2 close, new EPS guidance for Q2 FY14 is $0.06-$0.07, and for FY14 of $0.31-$0.33 on revenue of $3.955B-$4B. ET +51.8% to $33.54 premarket, CRM +3.3%. CC at 8 ET. (PR)

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Comments (10)
  • stanny2
    , contributor
    Comments (13) | Send Message
     
    More goodwill for the balance sheet!
    4 Jun 2013, 07:51 AM Reply Like
  • Sunil Shah
    , contributor
    Comments (1079) | Send Message
     
    Paying 20X Sales, massive underlying loss! Madness again...
    4 Jun 2013, 08:06 AM Reply Like
  • Jay Schembs, CFA
    , contributor
    Comments (148) | Send Message
     
    Sunil, how do you calc 20x rev? I see 7.9x (2.5 BN EV / 317 MM LTM rev) - still ridiculous, but not WDAY ridiculous.
    4 Jun 2013, 08:16 AM Reply Like
  • Michael Blair
    , contributor
    Comments (5097) | Send Message
     
    Feels good to be short CRM. I think we will see this stock in single digits again. Has a Nortel like aura to it.
    4 Jun 2013, 10:26 AM Reply Like
  • rmarzo
    , contributor
    Comments (14) | Send Message
     
    Wow! Marc is paying a lot of money for revenue growth.
    4 Jun 2013, 08:35 AM Reply Like
  • AndyK1234
    , contributor
    Comments (6) | Send Message
     
    Perfect fit - another loss making business on an insane multiple to sales. Not sure where the cash is coming from - balance sheet will start to look as fragile as GAAP P&L
    4 Jun 2013, 08:42 AM Reply Like
  • ReligiousWacko
    , contributor
    Comments (1845) | Send Message
     
    Heroku founders all quit within year and a half ( most much sooner). How soon will these guys bail?
    Of course CRM will not write down goodwill ...
    4 Jun 2013, 08:48 AM Reply Like
  • oopss
    , contributor
    Comments (6) | Send Message
     
    you raise 1 Bil from bondholders ( other peoples money ) , pay 2.5 Bil when you have yourself only 4 Bil in rev. for a money loosing enterprise to add to your money loosing ebnterprise which makes HOW MUCH IN REV. ?? Nice ... does anyone budgets like this at home ?
    4 Jun 2013, 10:38 AM Reply Like
  • Bartvp
    , contributor
    Comments (34) | Send Message
     
    I have been waiting for this 30% revenue growth. Seems like a good number, I'm buying! (puts)

     

    Someone wants to start a cloud business "GoodTarget" with me? Idea: sell $10 bills through the cloud for $9, take a billion in Salesforce $'s home two years later. Can't go wrong.
    4 Jun 2013, 11:26 AM Reply Like
  • wadeyr
    , contributor
    Comments (199) | Send Message
     
    Whats gonna be next?
    4 Jun 2013, 03:24 PM Reply Like
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