Salesforce Ventures invested $300M in Automattic while Salesforce was building a CMS

In September, Salesforce Ventures, the endeavor of arm of Salesforce, launched a hefty $300 million investment in Automattic, the company at the encourage of WordPress, the ubiquitous dispute administration gadget (CMS). On the same time, the company became placing the finishing touches on Salesforce CMS, an in-dwelling venture it launched last week.

The establish a matter to is, why did it retract to construct both?

One reason shall be that WordPress isn’t like minded successfully-cherished; it’s moreover the realm’s preferred dispute administration gadget, working 34 p.c of the realm’s 10 billion websites — including this one — in accordance with the company. With Automattic valued at $3 billion, that affords Salesforce Ventures a 10 p.c stake.

Given the tall investment, you wouldn’t dangle been irrational to no longer lower than remove into yarn the basis that Salesforce would possibly possibly well possibly moreover dangle had its appreciate on this company as an acquisition target. Genuinely, at the time of the funding, Automattic CEO Matt Mullenweg told TechCrunch’s Romain Dillet that there shall be some partnerships and integrations with Salesforce in the lengthy speed.

Now we now dangle a Salesforce CMS, and a doubtless partnership with even handed one of the indispensable realm’s largest net pages administration (WCM) instruments, and it’s that you simply would possibly possibly well possibly presumably moreover factor in that the 2 aren’t necessarily mutually uncommon.

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