Hedge fund Elliott Invest Management Taken a Activists are important stake in Salesforce Inc. moves after being laid off a The enterprise software company is experiencing deep stock appreciation

ElliottThe pushed for frequent strategic changes and sought representation on the board by the. a multibillion-dollar stake in The company was ranked as follows: a someone familiar with this matter. The San Francisco company’s market capitalization is now $151 billion, down from a A peak in excess of $300 billion in 2021.

“Salesforce is one of the preeminent software companies in the world, and having followed the company for nearly two decades, we have developed a deep respect for Marc Benioff and what he has built,” said Jesse Cohn, managing partner at Elliott in a statement. “We look forward to working constructively with Salesforce to realize the value befitting a company of its stature.” 

Benioff serves as chairman and co-chief operating officer. Salesforce. Elliott didn’t disclose details of its investment, which was first reported by The Wall Street Journal, in The statement.

Paul Singer’s Elliott Raked In a Record $13 Billion Last Year

ElliottThe other was involved in The second most prominent activist is pushing for change at tech companies, including Western Digital Corp. and Pinterest Inc. investor in Stocks in recent months. Starboard Value will be available in October took a stake in company, and stated that the company was having difficulties converting growth into profit.

Salesforce said earlier this month it would cut about 10% of its workforce and reduce its real estate holdings, after hiring too many people during the Covid pandemic as demand surged. It was home to about 80,000 employees at that time. The company said that it is adapting to customers’ more prudent spending habits. 

Salesforce It had nearly tripled its workforce in These are the four previous years. in A large portion of the company’s revenue comes from dozens and dozens acquisitions. buying Slack in 2021: $27.7billion Headcount increased by over 30,000 between January 2020 and October 2018. 

“This is not surprising to us,” Anurag Rana, a Bloomberg Intelligence analyst said Elliott’s move. “Salesforce’s valuation has plummeted since it announced the acquisition of Slack and since then we have seen a slowdown in sales and multiple executive departures.”

Bret Taylor had been Salesforce’s co-CEO, said He announced last year that Taylor would be leaving the company to go back to his entrepreneurial pursuits. Taylor was considered the best choice for Benioff’s eventual departure. Salesforce.

“It is now trading well below its pre-pandemic levels,” Rana was added. “Elliott’s involvement could help management focus both on organic sales growth and margin expansion. We won’t be surprised if there is a change at the top also, similar to what Microsoft went through back in 2013.”

–With assistance from Tom Giles.

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