In a move that is being hailed as both genius and reckless, Salesforce has acquired Own Company, a data management and protection solution provider, for a staggering $1.9 billion. But is this latest coup just a desperate attempt by Salesforce to regain its dominance in the tech industry, or a clever ploy to corner the market on data security?
Industry insiders are whispering that this deal is the first salvo in Salesforce’s new M&A strategy, after the company disbanding its M&A committee due to pressure from activist investors. And it’s no secret that Own has been the darling of venture capitalists, raking in over $500 million in funding from the likes of Tiger Global, BlackRock, and Salesforce’s own Salesforce Ventures. So is Salesforce buying its way to success, or just throwing cash at a problem that might not even exist?
Steve Fisher, Salesforce’s General Manager, has issued a statement saying the acquisition is a “game-changer” for data security, but critics are warning that this deal is nothing more than a cynical ploy to lock in customers and stifle innovation. Meanwhile, Own’s CEO, Sam Gutmann, has expressed his excitement to join forces with Salesforce, claiming that the acquisition will allow them to “deliver even greater value for our customers by driving innovation, securing data and ensuring compliance”. But what exactly does this mean, and are they just using fancy jargon to mask the reality that this deal is just another example of the same old tech industry games being played?
As of now, the deal is set to close in Q4 of Salesforce’s fiscal year 2025, subject to regulatory approvals and customary closing conditions. But is the world really ready for another giant tech merger? Should we be concerned that the biggest players are once again flexing their financial muscles, or are they simply adapting to the rapidly changing landscape of data security? One thing is for certain – this acquisition has everyone talking, and only time will tell what its real implications will be for the tech industry and its stakeholders.
