Thu, Oct. 27, 1:58 AM
- Speaking at WSJ.D Live in California, Salesforce (NYSE:CRM) CEO Marc Benioff described the recent pair of key acquisitions that got away.
- Twitter: "We've never had a deal leak before... We had to stop because I'm running the business in partnership with my shareholders."
- LinkedIn: "We really liked some of the business fundamentals, [as opposed to Microsoft executives which] specifically said they will create a product that will create a barrier to entry of other companies."
Tue, Oct. 18, 10:06 PM
- Among a cache of Colin Powell emails released by hackers was a presentation prepared in May for the Salesforce.com (NYSE:CRM) board (on which sits Powell) titled "M&A Target Review."
- Partial presentation slides
- The 60-slide document identified 14 possible acquisition targets. Among them were Adobe Systems (NASDAQ:ADBE), whose market cap of $53.7B is above that of Salesforce, and Pegasystems (NASDAQ:PEGA), with a $2.3B valuation.
- The list also included Demandware, which Salesforce ended up buying, and LinkedIn, which the company lost in a bidding war with Microsoft.
- Others: Workday (NYSE:WDAY), ServiceNow (NYSE:NOW), NetSuite (NYSE:N), Tableau (NYSE:DATA), Veeva Systems (NYSE:VEEV), BOX, Zendesk (NYSE:ZEN), HubSpot (NYSE:HUBS).
- CEO Marc Benioff earlier this month when fending off complaints about his interest in Twitter: “We look at a lot of things and we pass on almost everything."
Fri, Oct. 14, 1:40 PM
- Salesforce (CRM +5.3%) CEO Marc Benioff in an interview with the Financial Times notes Twitter (TWTR -6.5%) "wasn't the right fit for us" for "many different reasons."
- Salesforce was considered to be one of the only suitors remaining in a potential Twitter acquisition, and with its departure, leaves the table seemingly empty.
Tue, Oct. 11, 9:33 AM
- Reuters asserted the two parties remained in talks regarding a potential deal yesterday evening. CNBC's David Faber this morning issues similar claims, regenerating buzz around a pairing that was thought to be out of play.
- Twitter (NYSE:TWTR) +2.85%, Salesforce (NYSE:CRM) -2.45% in early trading.
- Last week: Salesforce CEO Marc Benioff comments on Twitter reports, obscurity persists
Mon, Oct. 10, 4:15 PM
- Although Salesforce was thought to be out of the mix as of this weekend, a new report has the company nonetheless still evaluating the benefits a deal could represent and what an appropriate valuation surrounding one might be.
- Potentially lowball offer cited to be under deliberation.
- Meanwhile, in an internal memo reportedly sent out to Twitter employees last week, CEO Jack Dorsey made no mention of any deals, instead highlighting initiatives revolving around the company's live strategy and other merits.
- Twitter (NYSE:TWTR) +0.63% after hours, Salesforce (NYSE:CRM) -0.25%.
Mon, Oct. 10, 8:56 AM
- Alphabet, The Walt Disney Co. and others had already been considered ruled out from the list of interested parties at one point contemplating a possible acquisition of Twitter (NYSE:TWTR).
- Over the weekend, a Bloomberg report noted Salesforce (NYSE:CRM), once thought to be seriously involved in the situation, is additionally not expected to pursue a deal.
- Salesforce shares have been pressured by the rumors in recent weeks, though are up 3% in pre-market trading as its interest is now supposedly fading.
Thu, Oct. 6, 7:13 AM
- Cross another potential Twitter (NYSE:TWTR) buyer off the list: Disney (NYSE:DIS) isn't pursuing a bid for the social platform either, according to Re/code.
- For now, that leaves Salesforce (NYSE:CRM) as the only potential buyer for Twitter, though the company has never confirmed publicly that it wants to make a deal.
- TWTR -15.6% premarket
- Previously: Recode: Twitter won't see bids from Google, Apple; TWTR -5.5% (Oct. 05 2016)
Wed, Oct. 5, 7:08 PM
- With Twitter (TWTR +5.7%) sale news coming fast and furious now, Recode reports that Alphabet (GOOG, GOOGL -0.2%) isn't planning to make an offer and that Apple (NASDAQ:AAPL) is unlikely as well.
- Twitter shares have given up the day's gains after hours, -5.5%. Apple is up 0.3% in late trading.
- A source says Twitter should have "low expectations" of an offer from Apple. And with Google reportedly not moving forward, that may leave the driver's seat open for Salesforce.com (CRM -5.8%), whose stock appears to drop the more it talks about buying Twitter. But Disney (DIS -0.2%) is still in the mix (or at least doesn't have as many sources tamping down reports of its interest).
- A Reuters report earlier said that Twitter would look to end sale discussions by the time of its Q3 earnings report, Oct. 27.
- Previously: Salesforce CEO Marc Benioff comments on Twitter reports, obscurity persists (Oct. 05 2016)
- Previously: WSJ: Twitter to field bids this week, likely from CRM, GOOG, DIS (Oct. 04 2016)
Tue, Oct. 4, 7:03 PM
- Twitter (TWTR -2%) is expected to field bids from suitors this week, and an especially interested Marc Benioff of Salesforce.com calls it an "unpolished jewel," The Wall Street Journal reports.
- Twitter has moved up 3% after hours following the news.
- Gathering actual bids suggests the sale of the company is much closer than before. And while Salesforce (CRM +3%) would love to make a splash by acquiring Twitter's voluminous data, Google (GOOG +0.5%, GOOGL +0.3%) and Disney (DIS +0.1%) are expected to be part of the action too, according to WSJ's sources.
- Twitter has untapped potential in advertising, e-commerce and data-rich applications, Salesforce chief Benioff figures -- though he may also be motivated by losing out to Microsoft in a race to buy LinkedIn. And at a price of $20B or more, it would be tougher to swallow for Salesforce (market cap of $49.2B) than for Alphabet ($539.9B) or Disney ($148.2B).
- After hours: CRM -0.8%.
Mon, Oct. 3, 5:39 PM
- Cash ($340M) and stock (estimated 3.4M-6M shares) to be issued.
- Close expected in Salesforce's Q4 (ending January 2017).
- Krux was founded in 2010 and had raised a total of $50M in funding prior to today's buyout.
- Expect more Salesforce (NYSE:CRM) developments to be revealed at the company's Dreamforce 2016 conference kicking off tomorrow.
- Krux announcement
Wed, Sep. 28, 6:28 PM
- Now officially linked in to wide-ranging speculation about who might buy Twitter (TWTR -3.2%): AT&T (T -1.5%).
- A purchase by AT&T could make sense, Mizuho's Neil Doshi writes, but he thinks Twitter's valuation is such that an acquisition doesn't really add up for anybody. He's downgraded TWTR to Underperform, with a price target of $15 (Twitter shares closed today at $22.96).
- If not great fits, the best fits for a Twitter purchase are Salesforce (NYSE:CRM), Alphabet (GOOG, GOOGL) and AT&T, "but that is about it" and "only Alphabet makes sense from a strategic perspective."
- Fundamentals at Twitter have "deteriorated significantly" over the past year, Doshi says. Verizon's paying about six times EV/EBITDA for the core of Yahoo (growing almost as fast as Twitter in many respects), while Twitter trades near a multiple of 16. Microsoft is buying LinkedIn for 20 times, though LinkedIn is growing much faster than Twitter.
- Meanwhile, Nomura reiterated a Neutral rating on Twitter and price target of $13, while Loop Capital downgraded to Sell from Hold, with a price target of $18.
Mon, Sep. 26, 3:32 PM
- With Salesforce (reportedly working with Bank of America) (CRM -0.2%), Alphabet (GOOG, GOOGL) and The Walt Disney Co. (DIS -1.3%) rumored to be in the mix, Twitter (NYSE:TWTR) is said to be gearing up to present itself to potential acquirers.
- While a bid by Salesforce is seen as unlikely and unfavorable by some (Citi, Morgan Stanley), last Friday it appeared firmly in the mx. Alphabet, meanwhile, is considered a favorite by others, with the available cash, advertising expertise and social network tie-in possibilities to make Twitter work under a new parent organization. Now that Disney is the latest to reportedly join the group, sports, distribution and video prospects are being weighed.
- Trading up more mildly than Friday's run on this development, it appears analysts, investors and Twitter itself are unsure of what direction the company will take next. The negative reaction of Salesforce shares on Friday and Disney shares today, though, may signal difficulty in attaining favorable terms for all parties involved in a deal should one come closer to materialization.
- Update (3:41 PM ET): CNBC's David Faber adds Microsoft (MSFT -0.8%) in as a potential bidder.
Mon, Sep. 26, 1:11 PM
- Citi's Walter Pritchard expressed like sentiment regarding a hypothetical Salesforce buyout of Twitter last Friday.
- Morgan Stanley's Keith Weiss today cites "an inability to see revenue synergies from the combination."
- Further: "Frankly, we struggle to see any near-term revenue opportunities from the combination of Salesforce.com and Twitter that aren’t available today via the current partnership – i.e . social listening/social media management. Vala’s list, while interesting potential opportunities for Twitter, seem to have limited adjacency to the current Salesforce.com solutions portfolio or core customer base. Even the longer-term value add of some insights yielded from Twitter data via Salesforce.com’s developing AI capabilities is difficult for us to see. Predictive marketing capabilities in the Marketing Cloud? Insight into how to better sell to Twitter users?"
- Weiss assumes a $14B-$17B theoretical acquisition range should Salesforce (CRM -0.7%) pursue Twitter (TWTR -3.1%) (based on 5x-7x average forward EV/sales of similar Salesforce transactions).
- Retains Salesforce at Overweight with a $107 price target (current price $69.94).
Fri, Sep. 23, 1:03 PM
- With Twitter (TWTR +18.2%) and Salesforce (CRM -5.3%) trading in opposite directions on today's buzz, Citi's Walter Pritchard states his position that the likelihood of a deal between the two is low and doesn't like the opportunity for Salesforce should one materialize.
- Pritchard: "While Twitter is involved in the customer service process, we don’t believe it is necessary for salesforce to own Twitter to be able to use it as a medium for customer service. Also, we don’t believe that if someone else bought Twitter, salesforce would be prevented from using Twitter as they do today. Our response, if CRM were to buy TWTR, would be negative. Twitter is profitable and while back of the envelope the deal might not be dilutive, we believe it would fuel concerns that CRM is de-focusing on for “customer” area in a quest to stretch for growth."
- Maintains a Buy rating on Salesforce amid the speculation.
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