ACTIVIST investor Elliott Management has snapped up a multibillion dollar stake in Salesforce as the software firm is rattled by a slowdown in growth.

In a statement shared with City A.M.

yesterday, Elliott managing partner Jesse Cohn said Salesforce was "one of the preeminent software companies in the world" and Elliott had developed "a deep respect for Marc Benioff and what he has built". The firm "look[ed] forward to working constructively with Salesforce to realize the value befitting a company of its stature," Cohn added.

Elliott has built a fearsome reputation globally for pushing through major changes in listed firms, with Glaxosmithkline and SSE among the firms to fall into its sights in the UK.

The group's motives are so far unclear at Salesforce but the investment comes as the firm is rocked by a wider slump in the tech sector.

In a letter to staff earlier this month, Salesforce co-chief Marc Benioff said customers had been more "measured" in their purchasing decisions which led Salesforce to cut around 7,000 staff, or 10 per cent of its workforce. The firm has also reportedly faced troubles after its $27bn (£21.8bn) acquisition of Slack.

Shares in the tech behemoth have fallen around 32 per cent in the past 12 months, though they jumped four per cent in pre-market trading on the news.

The news comes as Benioff's co-chief Bret Taylor prepares to leave the firm at the end of this month.

(c) 2023 City A.M., source Newspaper