Wedbush: Salesforce.com's Most Likely Bidder Is Oracle

Courtesy of Benzinga.

Salesforce.com, Inc.'s (NYSE: CRM) $49.42 billion market capitalization and rich price relative to its expected earnings leave only a few giant companies as potential suitors, an analyst told Benzinga Wednesday.

Wedbush's Steve Koenig said Oracle Corporation (NYSE: ORCL), with a market cap of $197.33 billion, might be the most likely buyer on a list of potential bidders.

Salesforce, which provides customer relationship management technology, has hired investment bankers after being approached by a potential acquirer, according to a report earlier by Bloomberg, which cited unnamed sources.

Salesforce soared nearly 8 percent in extended trading to $75.67, after closing up more than 5 percent Wednesday. The Bloomberg report, which didn't name the potential acquirer, touched off a frenzy of speculation.

Related Link: Salesforce Approached By Potential Acquirer? Here Are What Analysts Previously Said

With Salesforce's business fundamentals "deteriorating," Koenig said the company could be at an "optimal time" for a sale.

Other companies that might be interested include Microsoft Corporation (NASDAQ: MSFT), SAP SE (NYSE: SAP) and International Business Machines Corp. (NYSE: IBM), in Koenig's view.

Koenig believes the Bloomberg report is accurate, but Koenig was noncommittal on whether he thinks a deal will transpire.

Oracle's Chief Executive Mark V. Hurd told a conference last week that Salesforce's valuation is "absurd" and the company "doesn't make any money."

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