Salesforce.com, Inc. (NYSE:CRM) Buyout Rumors Get Wall Street Analysts Busy

Salesforce.com, Inc. (NYSE:CRM) is alleged to be a buyout target for the companies looking to get a hold in the customer relationship management domain. Trade analysts estimated Microsoft Corporation (NASDAQ:MSFT), Google Inc (NASDAQ:GOOGL) and SAP SE (ADR) (NYSE:SAP) as the possible contenders for the cloud computing company.

Having registered a 23% hike in stock and having a $48.37 billion market capitalization, this year, acquisition of Saleforce.com is touted as the biggest deals of 2015. On Friday, SAP denied the buyout and said that it was not considering any acquisitions this year. Meanwhile, there have been no comments from Microsoft.

If Microsoft finalizes the acquisition, the move would help in strengthening the tech company and aid it with the cloud computing solutions offered by Salesforce.com. Any company that buys Salesforce.com stands to gain at this point because of the strong holding of the market in the cloud computing and CRM platform.

Buyout to fuel market disruption

Even Oracle Corporation (NYSE:ORCL) backed out and said that they were not mulling a buyout. Oracle is of the view that if Salesforce.com was to be acquired, it would create a disorder in the software market. Ever since the news first surfaced, the shares of Salesforce.com jumped by 12%.

Even though the company has a strong financial landing at this point, peer competition, fluctuations in currency and increased investments in expansions could hamper the revenue generation for the company. Salesforce.com is already in consultation of financial experts for securing its future.

According to a report by Gartner titled ‘Market Share Analysis: Customer Relationship Management Software, Worldwide’, Salesforce.com had a 16.1%share in the overall CRM market. This means that any of the companies that mulls buying Salesforce, will also become a dominant market player.

Other possible acquisitions

Meanwhile, analysts have also come up with the other companies that can be a buyout target if Salesforce.com is acquired. CMS company Amdocs Ltd. (NASDAQ:DOX), NICE Systems Ltd. (NASDAQ:NICE), NetSuite Inc. (NYSE:N), Verint Systems Inc. (NASDAQ:VRNT) and Workday Inc. (NASDAQ:WDAY) are the other considerations.

Even as the possibility is low, the acquisition can be a strong step for the computing world and lead to a growth of business for the companies.

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Published by Pamela Garcia

Pamela Garcia is a keen follower of U.S. stock market

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