Salesforce is too pricey for Microsoft

Microsoft campusMicrosoft was unable to come up with a good price for Salesforce and the talks fell through, according to people in the know.

CNBC confirmed that Vole and Salesforce held “significant talks” but failed to agree on a price, Microsoft  was offering about $55 billion for the world’s biggest maker of online sales software. However Salesforce founder and Chief Executive Marc Benioff held out for $70 billion.

Microsoft Chief Executive Satya Nadella was reluctant to pull the trigger on a deal of such size and the consequences for his company, on his watch.  It was seen by his Microsoft  advisers as the sort of deal which would be “daring” and “brave”.

Analysts generally think that Salesforce was doing well in the cloud, given its leadership position and stellar brand and distribution, all that would have fit well within the Microsoft ecosystem.

San Francisco-based Salesforce leads the global customer relationship management (CRM) market, which is valued at $23 billion annually.

Bloomberg reported last month that Salesforce had been approached by a potential buyer. This triggered speculation that Microsoft, Oracle, IBM, Amazon and SAP could be in the running for Salesforce.  SAP has denied it strongly and does not think anyone else would come up with the readies for the outfit.

Salesforce, which was valued at $48.4 billion as of Thursday’s close, reported a profit for the first time in seven quarters this week.