CNBC: Microsoft And Salesforce Held Talks, Could Not Agree On Price

Shares of Salesforce.com, inc. CRM spiked up over 2 percent Friday following a report from CNBC’s David Faber that the company had been in talks with Microsoft Corporation MSFT about a purchase.

According to the sources that were familiar with the situation, the talked eventually stalled as the two companies could not agree on a price for Salesforce.com.

Microsoft was said to be willing to offer approximately $55 billion for Salesforce, while its founder and CEO Marc Benioff may have asked as much as $70 billion for the company.

“Salesforce was engulfed in takeover rumors late last month when Bloomberg reported on an approach of an unnamed suitor that was not Microsoft, for the company. Bloomberg also reported earlier this month that Microsoft was evaluating a bid for Salesforce, but said no talks between the two companies were taking place. Both reports sent shares of Salesforce sharply higher,” Faber said.

The talks between the companies ended in early May and it was not expected they would resume.

Microsoft CEO Satya Nadella “was said to be somewhat reluctant to pull the trigger on a deal of such size and consequence for his company,” according to the report, and Nadella had only been in the CEO role for 18 months.

The deal structure was said to include a “significant portion” of Microsoft’s $95 billion cash reserve and Benioff might have been able to roll his 5.7 percent stake in Salesforce into Microsoft shares along with a management position. Other shareholders would have received cash.

Salesforce.com, inc. recently traded at $74.78, up 2.56 percent.