Salesforce Inc (NYSE:CRM) shares are trading higher Monday following reports activist investor Elliott Management took a multi-billion dollar stake in the cloud software company.
What Happened: According to a Wall Street Journal report citing people familiar with the matter, Elliot Management, one of the largest activists, has taken a sizeable position in Salesforce just weeks after the company announced plans to cut its workforce and close offices to manage costs. It’s not clear what the firm’s plans are for the company.
“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,” Jesse Cohn, managing partner at Elliott Management, reportedly said.
“We look forward to working constructively with Salesforce to realize the value befitting a company of its stature.”
Salesforce provides enterprise cloud computing solutions to companies of every size. In the company’s most recent earnings report, Salesforce guided for fourth-quarter revenue growth between 8% and 10%, down from 14% sequentially.
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CRM Price Action: Salesforce has a 52-week high of $234.49 and a 52-week low of $126.34.
The stock was up 4.71% at $158.39 at time of publication, according to Benzinga Pro.
Photo: courtesy of Salesforce.
