Microsoft may be interested in buying Salesforce

Microsoft and Salesforce, together
Microsoft and Salesforce, together

Update: Reuters reports that despite earlier speculations, Microsoft "is not weighing an offer for Salesforce.com."

Citing two unnamed sources familiar with Microsoft's plans, Reuters said that Salesforce's current market valuation makes it too expensive for an acquisition by the Windows-maker, but that "it is possible that Microsoft could review a bid for Salesforce in the long term."

What it could mean

Microsoft's CEO Satya Nadella has made it his mission to make Microsoft the dominant cloud services provider on the market. Acquiring Salesforce would give him the technology and talent to bolster a company he has already begun restructuring in favor of cloud services.

Additionally, Salesforce has become the leading force in enterprise technology in the wearables and machine-to-machine space. A union with Microsoft could give the two companies the leading device and reporting mechanism by integrating Microsoft Band and Hololens with Salesforce's data and analytics tools.

Bloomberg estimates Salesforce's market value to be approximately $50 billion, or roughly 17% of Microsoft's $290 billion valuation.