According to a new report, Microsoft is not planning to place a bid for the cloud software company Salesforce, two people familiar with the matter said. Earlier this week, a report from Bloomberg hinted that Microsoft may pursue a bid for the software company as it's considered a competitor for the company's Office 365 productivity suite. The previous report mentioned that there are no talks going on between the two companies, but Microsoft is a potential bidder if the company goes on sale.
The report says,
"Microsoft Corp currently is not weighing an offer for Salesforce.com Inc (CRM.N), two people familiar with the matter said on Thursday, dampening speculation that Microsoft could be drawn into bidding for the cloud software company."
One of the persons said that Microsoft considers the market valuation of the software firm to be quite expensive, which could be one of the reasons why it is not planning to place a bid. However, things may change in the long run and Microsoft may change its mind about the acquisiton.
Salesforce is becoming a popular company with a market capitalization of $49 billion, making it an expensive company to acquire. In the past 12 months, the company's share rose by 48 percent.