Salesforce raises $25 billion in debt for buyback amid AI transition concerns
By
Janet Harrison
Plain bagel done well. Pleasantly substantive.
Summary
Salesforce is raising up to $25 billion in debt to fund a massive stock buyback program, signaling to investors that the company is undervalued amid concerns about AI disruption to its core CRM business. The move comes as Salesforce's latest quarterly results show the market is still judging its AI transition on a quarter-by-quarter basis. The company is trying to convince investors that its established CRM franchise can survive the agentic AI wave and that its newer AI products can grow fast enough to matter.
Key quotes
· 3 pulledSalesforce is using a debt-funded buyback to argue that investors are undervaluing the company, even as its latest results show the AI transition is still being judged quarter by quarter.
That is not a routine capital return move. It is a message, sent while Salesforce is trying to convince the market that its old CRM franchise can survive the agentic AI wave and that its newer products can grow fast enough to matter.
Bloomberg reported that Salesforce planned to raise as much as $25 billion in debt to fund repurchases, one of the largest borrowings in its history.
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