Teeqoz said:
super6646 said:
Now we've recently heard about talks that salesforce was going to be bought, and believe it or not the bidder was Microsoft. However Microsoft was only offering a "meager" 55 billion. Salesforce wanted 70 billion. Now the stock is has a market cap of 50 billion, and 55 billion is only a 10% premium. But consider for a moment, the stock is overvalued by a lot, and salesforce really looks at its peak. Demanding 70 billion for that is way to much. Microsoft does have that kind of money, but what happens if it goes bad? Take a 70 billion write off charge? Fact is, salesforce missed a huge opportunity to cash in before it was too late, and they where cocky and demanded too much. Their stock will go down in the next several years as revenue's begin to decline. Fact is, 35 billion in my opinion is much more conservative for this company, but 55 billion is still ok. But 70 billion, damn.
Source: http://www.cnbc.com/id/102702029
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Why would revenues begin to decline?
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Cause the company has peaked, and everyone is starting to move away to other services. Also Microsoft already has CRM and cloud products, so I don't know why they bothered.
