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Chronicles

The story behind the story

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Salesforce to buy data visualization company Tableau for $15.7B in all-stock deal, a big premium to the company's market cap of $10.8B at Friday's trading close

On the heels of Google buying analytics startup Looker last week for $2.6 billion, Salesforce today announced a huge piece …

TechCrunch Ingrid Lunden

Context & Ripple Effects

Salesforce is paying roughly a 45% premium — $15.7B in stock against Tableau's $10.8B Friday close — to pull data visualization inside the CRM platform, days after Google paid $2.6B for analytics startup Looker. It extends an acquisition playbook Salesforce has run before, when it used Demandware to buy its way into e-commerce rather than build.

First-order effects

  • Tableau shareholders swap public-company equity for Salesforce stock at a substantial premium, while Salesforce gains a visualization layer it can bind directly to customer data already flowing through its CRM.

Second-order effects

  • Google's Looker purchase and this deal together put every independent analytics vendor on the block list, forcing rivals like Microsoft and Amazon to either acquire or defend their own BI offerings as buyers reprice the category upward.

Third-order effects

The trend: Enterprise software is consolidating around data and analytics, with platform vendors like Salesforce and Google acquiring standalone BI and data-management firms faster than they can be built internally.