Earlier this month, Bloomberg first reported that Salesforce.com is in talks with some potential buyer. Later there were reports that Microsoft was also one of the potential candidate that was in discussions with the company. Today, CNBC reported that Microsoft and Salesforce.com had significant talks earlier this spring about a purchase of Salesforce by Microsoft. In fact, the deal didn’t went through because of the price. While Microsoft said to be willing to offer roughly $55 billion, Marc Benioff is said to have kept raising his expectations to as high as $70 billion.
The deal envisioned Microsoft using a significant portion of its $95 billion cash pile to pay for Salesforce, but there was discussion of allowing Benioff to roll his 5.7 percent stake in Salesforce into Microsoft stock, while other shareholders would have gotten paid in cash. Benioff would have had a management role at Microsoft under the deal, according to people close to the talks.
I think it is good for Microsoft that this deal didn’t happen just like the Yahoo deal. Remember, Microsoft offered $44 billion for Yahoo few years back and Yahoo rejected it.