SOURCE / COMPANIES
Microsoft acqusition talks with Salesforce fell through on pricing differences: CNBC
Published: May 24, 2015 11:28 PM
Microsoft Corp and Salesforce.com Inc held "significant talks" this spring but failed to agree on a price, CNBC reported on Friday, citing people familiar with the matter.

Microsoft was willing to offer about $55 billion for the world's biggest maker of online sales software. Salesforce founder and chief executive Marc Benioff had expected as much as $70 billion, CNBC reported.

A potential bidder can go up to $70 billion and Microsoft, Oracle Corp and Amazon.com Inc are the companies most likely to be suitors, FBR Capital Markets analyst Dan Ives said in an e-mail to Reuters.

Apart from the high asking price, Microsoft chief executive Satya Nadella was somewhat reluctant to pull the trigger on a deal of such size and consequence for his company, CNBC said.

Microsoft and Salesforce declined to comment on the report.

"Salesforce is the golden jewel in the cloud, given its leadership position and stellar brand and distribution, all that would have fit well within the Microsoft ecosystem in our opinion," Ives said.

San Francisco-based Salesforce leads the global customer relationship management (CRM) market, which is valued at $23 billion annually, according to tech research firm Gartner.

CRM software helps companies organize and track sales calls and leads.

Salesforce provides its services online, with no software directly installed on PCs, making the company attractive to technology giants such as Oracle and Microsoft, who have been late entrants into the fast-growing cloud computing market.