Activist investor Elliott eyes Salesforce

Activist investor Elliott eyes Salesforce

Marc Benioff

Salesforce founder and CEO Marc Benioff. Photo: Marlena Sloss/Bloomberg through Getty Images.

Activist investor Elliott Management has constructed a multi-billion greenback place in cloud software giant Salesforce, as first reported by the Wall Street Journal and confirmed by Axios with a supply near the scenario.

Why it issues: Elliott usually needs substantial change on the corporations it targets, and it nearly all the time will get what it needs.

  • One current high-profile instance was Twitter, the place Elliott wanted to oust Jack Dorsey as CEO.
  • Other main tech corporations with which Elliott has been concerned embrace Pinterest, Citrix and AT&T.

The massive image: Salesforce is the world’s largest software-as-a-service (SaaS) firm, however has seen its inventory value sink by round 50% since its November 2021 high-water mark.

  • Recent challenges have included slowed development, main layoffs and the departure of co-CEO Bret Taylor.
  • Taylor is the second Salesforce co-CEO to depart, after not fairly meshing with firm founder Marc Benioff. He additionally was the driving pressure behind main Salesforce acquistions like Slack and Tableau, the place cultural integration proved difficult.

What they’re saying: Elliott had but to publicize particulars of its intentions, however managing associate Jesse Cohn did present the next assertion:

  • “Salesforce is among the preeminent software program corporations on the earth, and having adopted the corporate for almost 20 years, we have now developed a deep respect for Marc Benioff and what he has constructed. We sit up for working constructively with Salesforce to understand the worth befitting an organization of its stature.”
  • Salesforce didn’t instantly return Axios’ request for remark.

Thought bubble: There are only a few corporations giant sufficient to even try a takeover of Salesforce, and so they’d all face extreme antitrust scrutiny. But that does not imply they will not strive, now that Elliott is within the image.