Could you activist for peace? handy in Salesforce? With ad On the Monday that Elliott is reportedly withdrawing his board nomination, it appears the CRM leader may have forged a peace deal. The question is: at what cost?
While it’s unclear what this deal means for the other four activist firms operating within the company, Elliott is likely pleased with the company’s recent changes, including a surprisingly strong quarter combined with some moves like stock buybacks. by the shareholders, the dissolution of the M&A group and the reduction of costs. strategies (which in part resulted in the dismissal of 10% of the staff).
But this doesn’t necessarily mean Elliott’s job is done with the company, a person familiar with the deal told TechCrunch+.
Surprisingly, the terms between the two companies do not include a standstill agreement. There wasn’t even a clearing house agreement or some kind of legal document that prohibited Elliott from badmouthing the company, talking to the press, or anything like that.
“So Elliott established an ongoing relationship. That doesn’t mean she’s leaving or she’s never coming back,” said the person, who asked to remain anonymous because she was not authorized to speak publicly on behalf of the company. “Like I said, with the freedom to not stop if everything goes wrong a month or a couple months from now, the company can always come back and say, ‘You know, we’re still watching. We’re still involved, and here’s what we think you should do to make it better. Elliott doesn’t want that to happen. But that’s a possibility that could happen.”
All of that gives Elliott plenty of leeway to continue to push the company if circumstances warrant. But for now, at least, Salesforce appears to have appeased the activist firm, and the activists have been shaken off ahead of the shareholder meeting in June.
