Now Reading: Silver Lake in talks to buy Workday in potential $50 bn deal
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Silver Lake in talks to buy Workday in potential $50 bn deal
Silver Lake is in preliminary talks to acquire cloud-software company Workday in what could become one of the largest software buyouts ever, Reuters reports, citing unnamed sources. The California-based firm had a…
The Story in Brief
Silver Lake is in preliminary talks to acquire cloud-software company Workday in what could become one of the largest software buyouts ever, Reuters reports, citing unnamed sources. The California-based firm had a market value of around $43 billion before the news; shares surged nearly 18% on Thursday, lifting its market cap to roughly $51.1 billion. The deal is at an early stage with no certainty of completion. A transaction above $50 billion would signal renewed private-equity appetite for mega-buyouts after a period of muted deal activity driven by high interest rates and tough financing conditions.
For context, the biggest software takeovers include Microsoft's $69 billion acquisition of Activision Blizzard and Broadcom's $69 billion purchase of VMware, both in 2023. Dell bought EMC for $67 billion in 2016, and a Saudi-led consortium acquired Electronic Arts for $55 billion earlier this year.
The Indian Opinion
This story is being breathlessly reported as a sign that private equity is back for mega-tech deals, but it's more hedge than headline. Silver Lake's approach is early-stage and uncertain, yet the market has already priced in a near-20% bump. The real test is financing: with interest rates still high and regulators more wary than before, can Silver Lake actually close a deal north of $50 billion? Watch whether rival buyers emerge or if Workday's board sets a floor price, that will tell us if this is a genuine bid or just a leak to flush out a higher offer.
Source: livemint.com
This story was synthesised by AI from the source linked above.
