Canaccord Genuity Morning Coffee on SalesForce.com (CRM): Buddying Up
Tweet
Share
E-mailGet Alerts CRM Hot Sheet
Price: $209.17 +1.82%
Rating Summary:
48 Buy, 20 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
48 Buy, 20 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
Canaccord Genuity Morning Coffee on SalesForce.com (NYSE: CRM): Buddying up.
According to a report from All Things Digital, Salesforce.com is close to acquiring Buddy Media for something on the order of $800 million. That is about 15-20x revenues, which is the price that Canaccord Genuity Technology Analyst Richard Davis has heard from several venture capitalists contacts is the current valuation for super-hot private companies. Buddy Media runs campaigns and assists companies in maintaining a strong social media presence. It works on Facebook (NYSE: FB), and more recently has extended to LinkedIn, Twitter and Google+. Salesforce has roughly $1.7 billion in cash and $1.2 billion net of a $500-million convert, so it could afford such a purchase. This isn't Salesforce's first foray into social media. Last year, the company paid $326 million for Radian6, a purveyor of technology used to monitor conversations on social media outlets. Davis’ best guess is that the first reaction could be negative since $800 million is larger than any of the firm’s previous deals and the valuation is high. However, Buddy Media is, in his view, a very well positioned company, so after investors’ heads cleared, he thinks they are likely to become bullish.
According to a report from All Things Digital, Salesforce.com is close to acquiring Buddy Media for something on the order of $800 million. That is about 15-20x revenues, which is the price that Canaccord Genuity Technology Analyst Richard Davis has heard from several venture capitalists contacts is the current valuation for super-hot private companies. Buddy Media runs campaigns and assists companies in maintaining a strong social media presence. It works on Facebook (NYSE: FB), and more recently has extended to LinkedIn, Twitter and Google+. Salesforce has roughly $1.7 billion in cash and $1.2 billion net of a $500-million convert, so it could afford such a purchase. This isn't Salesforce's first foray into social media. Last year, the company paid $326 million for Radian6, a purveyor of technology used to monitor conversations on social media outlets. Davis’ best guess is that the first reaction could be negative since $800 million is larger than any of the firm’s previous deals and the valuation is high. However, Buddy Media is, in his view, a very well positioned company, so after investors’ heads cleared, he thinks they are likely to become bullish.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Advance Auto Parts (AAP) PT Lowered to $48 at DA Davidson Following 25% Selloff Post Q2 Results
- Hilton Grand Vacations approves new $600M share repurchase plan
- NVIDIA (NVDA) in talks to invest in data-center company Cloverleaf Infrastructure - WSJ
Create E-mail Alert Related Categories
Analyst Comments, Rumors, Trader TalkRelated Entities
TwitterSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
