Submitted by Yi-Wyn Yen01.07.2009
Thunderdome
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News149027Salesforce's
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Betting closes on Dec 20 2009
Last year the Industry Standard ran a prediction that the Google-Salesforce merger would be announced by the end of 2008, which 91% of the community correctly guessed wouldn't happen.
There's a good chance, though, that Google will buy out Salesforce this year. IDC's 2009 Top 10 Predictions reports that "now that Microsoft has declared its intent to expand more broadly to the cloud, Google will finally make a move for Salesforce.com, or another business applications platform and portfolio (e.g., SugarCRM): an essential ingredient to building up its position as an destination."
Salesforce would be an attractive buy for Google. The search giant has made slow progress cracking the online business software market. Salesforce, the leader in cloud applications for corporations, has a market cap that's just under $4 billion. Google is sitting on more than $14 billion in cash.
Prediction: Google will announce an intent to acquire Salesforce by the end of 2009.
Image: Guerrilla Futures/Jason Tester's photostream, Flickr
Current Community Consensus 9%
Prediction Statistics
| Betting Closes: | Dec 20 2009 | Current Consensus: | 8.71% | Total Bets: | 42 |
| Today's Change: | 0.77% | ||||
| Life Time High: | 48.75% | ||||
| Life Time Low: | 7.94% |
Price History
Comments
This may or may not make strategic sense, but I doubt Salesforce will sell at their current price levels, which are well off their highs and should remain off their highs through the vast majority of 2009. In addition, Google's stock price has been cleaved, so its ability to finance the transaction with a high multiple script has been severely impacted.
So long as the company doesn't run into any financial trouble I would expect that that this transaction does not take place for financial reasons.
Salesforce top execs have left the company, including president and chief strategy officer Steve Cakebread, with speculation of shaky Q4 report.
Exactly the reason I cashed out my bet :)
Exactly the reason I cashed out my bet :)
but, i don't think it is the right time for google to invest in any of the company.
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