Bullish options flow was detected in WORK stock on November 25, 2020.

Make sure to review this lesson on options trading so that you understand the chart above.

Rumors are circulating that Salesforce could acquire Slack Technologies (WORK). The rumors are coming from CNBC and the Wall Street Journal.

The rumors are that Salesforce (CRM) has held talks to acquire Slack Technologies (WORK) and a deal could be announced as soon as next week, Alex Sherman and Jessica Bursztynsky of CNBC report, citing a person familiar with the matter. It is unclear how much the deal would be worth, they add. Shares of Slack Technologies are up 24%, or $7.04, to $36.62 following the Wall Street Journal’s earlier report of the deal talks. Salesforce is down 3%, or $9.03, to $251.81. Source: https://www.cnbc.com/2020/11/25/slack-shares-jump-following-report-of-possible-salesforce-acquisition.html

Stifel analyst Tom Roderick said, in commenting on the Wall Street Journal report that Salesforce.com (CRM) has been in talks to potentially acquire Slack (WORK) at a value that is likely above its current capitalization of $17B, that his experience suggests “when the WSJ reports on ‘people familiar with the situation,’ you can feel reasonably comfortable that the report is well beyond pure chatter and innuendo.” At a theoretical price of $20B, Slack “would be expensive, and near-term dilutive to margins, but digestible” for Salesforce, said Roderick, who thinks a “Collaboration Cloud” would present Salesforce with “yet another massive horizontal” market to address. While acknowledging he has “no knowledge of the proceedings here” and is “merely offering an outside opinion,” the analyst added that Zoom (ZM) would be the “obvious candidate” he thinks of when wondering who else could be a potential buyer and “could defend itself more effectively against the Microsoft Teams approach” if it owned a collaboration platform like Slack. Roderick keeps a Buy rating and $295 price target on Salesforce shares, which are down nearly 5% to $249.21 in late day trading.

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