Salesforce Inc., a provider of cloud-based software, has received a multibillion-dollar investment from activist investor ‘Elliott Management Corp’, according to some people who are familiar with the situation.
Jesse Cohn (Managing Partner, Elliott) told Reuters, “We look forward to working constructively with Salesforce to realize the value befitting a company of its stature”.
Cohn, who has worked on the boards of different tech-based companies like eBay & Twitter, addressed Salesforce as “one of the preeminent software companies in the world.”
Further, he added, “developed a deep respect for Marc Benioff and what he has built.”
Bret Taylor, Benioff’s co-CEO, is anticipated to resign this month, leaving Benioff as the only CEO.
Elliott declined to comment, and Salesforce did not react right away to Reuter’s request for comment.
Elliott has already made a lot of tech-focused investments. When Marc Steinberg, manager of Elliott’s portfolio, was appointed a director by Pinterest Inc., it recently earned a board seat.
Rapid expansion hiring left Salesforce Inc. with an overstaffed workforce in the midst of an economic slowdown, and the company announced earlier this year that it wants to slash employment by 10% and close several operations.
This has happened for the second time in 3 months that any activist company has acquired stock in Salesforce. In October, Starboard Value disclosed an unknown interest in the company and claimed it was experiencing a valuation discount because of a “poor combination of growth and profitability.”
At the time, Starboard CEO- Jeff Smith, indicated that his company had been talking to new executives and management who were given the Salesforce position in November 2021 and were more committed to striking a balance between growth objectives and profit-making.