Update: Reuters reports that despite earlier speculations, Microsoft "is not weighing an offer for Salesforce.com."
Citing two unnamed sources familiar with Microsoft's plans, Reuters said that Salesforce's current market valuation makes it too expensive for an acquisition by the Windows-maker, but that "it is possible that Microsoft could review a bid for Salesforce in the long term."
Original story: Microsoft may make a bid to acquire CRM giant Salesforce.com, according to a Bloomberg report. Although no sale is imminent, the potential marriage would unite two enterprise technology megaforces.
Worth approximately $50 billion, Salesforce is sitting on a cash reserve of about $1.67 billion. Bloomberg's sources claim Microsoft is evaluating a bid for Salesforce after the San Francisco, Calif.-based CRM services company was approached by another potential buyer.
The sources also indicated a long-term willingness on Microsoft's part to attempt to acquire Salesforce under the appropriate terms. However, Microsoft had remained on the sidelines until an unnamed company stepped in to make a bid for Salesforce, according to the report.
What it could mean
Microsoft's CEO Satya Nadella has made it his mission to make Microsoft the dominant cloud services provider on the market. Acquiring Salesforce would give him the technology and talent to bolster a company he has already begun restructuring in favor of cloud services.
Additionally, Salesforce has become the leading force in enterprise technology in the wearables and machine-to-machine space. A union with Microsoft could give the two companies the leading device and reporting mechanism by integrating Microsoft Band and Hololens with Salesforce's data and analytics tools.
Bloomberg estimates Salesforce's market value to be approximately $50 billion, or roughly 17% of Microsoft's $290 billion valuation.
