Salesforce gets a chilly investor response to a $6 billion deal at a 58% premium

Impact · against what's priced in

The $6 billion acquisition at a 58% premium creates immediate downward pressure on Salesforce by threatening the free cash flow margins and buyback capacity the market currently assumes.

CRM−0.40

Challenges what's priced in

The price assumes

Sustaining the current near-35% free cash flow margin

A $6 billion deal at a 58% premium suggests significant overpayment, which directly threatens the 35% free cash flow margin and the capacity for the $25 billion buyback program the price currently assumes.

What CRM's price assumes · Sep 3

• software▲2%
• cloud computing
• m and a
• CRM
• acquisition
• premium
• salesforce

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