Why It’s Important: Slack is increasing the prices for its Pro plan and not for its Business Plus or custom enterprise plans, which could lead to more customers shifting to the other plans.

Related Link: Salesforce Q1 Earnings Highlights: Revenue And EPS Beat, $42 Billion Remaining In Revenue Under Contract Together, the two companies are poised to take on Microsoft and its Teams application in competing for the custom of businesses operating on a work-from-home model, necessitating online communication.Customers on the free plan will lose access to files, messages and clips older than 90 days beginning on Sep. Under the new deal, Salesforce will be able to incorporate Slack into its flagship Customer 360 product, opening new opportunities for reaching customers and marketing its software. Butterfield’s personal wealth is now estimated to be around $1.45 billion. Salesforce’s share price closed at $241.35 on Tuesday, having increased by almost 50% in the past year, and. As Butterfield owns over 39 million shares in Slack, he stands to gain enormously through the deal, and will come out owning just over 3 million shares in Salesforce – collectively worth around $725 million – and gain just over $1 billion in cash, though this will likely be cut down to around $660 million after state and federal capital gains tax. The terms of the acquisition state that Slack shareholders will receive 0.076 shares in Salesforce for each Slack share they let go, plus $26.79 in cash for every share.

This latest surge in the tech CEO’s wealth is also due to his shares in the company he co-founded, which will be acquired by Salesforce in the coming merger. When news broke of a potential deal between the two companies last week, Slack shares promptly ballooned and increased Butterfield’s fortune by around $400 million.

Following a historic acquisition that will see business software giant Salesforce buy workplace chat service Slack for $27.7 billion, Slack CEO Stewart Butterfield has seen his net worth boosted by over $200 million, according to Forbes.

Slack salesforce acquisition