Whether the story that Salesforce is looking for a buyer is true, or false, it is certainly was lucrative.
On Wednesday Bloomberg reported that Salesforce had hired bankers to advise on a potential sale of itself. It would be the biggest tech acquisition of the year, and would require a massive buyer — a Microsoft or Oracle.
Salesforce wouldn’t confirm or deny the rumour directly.
Either way, on this chatter, Salesforce’s stock spiked from $US66.89 to an all time high of $US74.65.
That means major shareholders got significantly richer. In this case, the biggest winners were Fidelity Investments and CEO Mark Benioff.
- Fidelity made $US715,822,379.52 from its 14% stake in the company after Wednesday’s spike.
- Benioff made $US292,358,000 from his 5.45% stake — which is not bad for a guy who is paid around $US2.9 milliion in cash and $US27.6 million in equity.
- Parker Harris, a co-founder of Salesforce, made $US16,042,643.76 from his 0.32% stake.
- And Salesforce ex-board member Craig Ramsay made $US10,288,852.08 on his stake in the company.
These are only paper gains — there has been no formal announcement of a deal, or even a follow-up media report confirming Wednesday’s news. So, until new information comes to light, these paper gains will stay on paper.