Activist Investor Elliott Makes Multibillion-Dollar Investment In Salesforce: WSJ

Activist investor Elliott Management Corp has reportedly picked up a multi-billion dollar stake in cloud software firm Salesforce Inc CRM, the Wall Street Journal reported, citing people familiar with the matter.

What Happened: Elliott managing partner Jesse Cohn said, “We look forward to working constructively with Salesforce to realize the value befitting a company of its stature,” reported the Journal.

Cohn said that Elliott has “developed a deep respect" for Salesforce Co-CEO Marc Benioff, according to the report.

The details of Elliott’s campaign were not revealed, according to the Journal.

Salesforce and Elliott did not immediately respond to Benzinga’s request for comment.

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Why It Matters: The news of Elliot’s interest in Salesforce comes at a time when the company is planning to reduce the current workforce by 10% to help trim costs.

Elliott is known for pushing changes that touch sales and management; the company has previously targeted tech companies such as PayPal Holdings, AT&T, and Dell. 

In October, another activist investor, Starboard Value LP, took a significant stake in Salesforce. Starboard manages nearly $6.2 billion in assets. 

Elliott, in comparison, has $55 billion in assets under management and also has a private equity arm that on occasion bids on companies in the crosshairs of its activist campaigns, according to the Journal.

Salesforce reported revenue of $7.84 billion, an increase of 14% on a year-over-year basis, beating market expectations of $7.82 billion. Even so, the company’s vice chair and co-CEO Bret Taylor announced his exit. 

Price Action: On Friday, Salesforce shares closed 3.3% higher at $151.25, according to Benzinga Pro data. 

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