Salesforce and Berkshire Hathaway Buy Into Snowflake IPO

Salesforce and Berkshire Hathaway Buy Into Snowflake IPO

Snowflake said it plans to sell 28 million shares at between $75 and $85 each in an initial public offering, valuing the cloud-data company at as much $23.7 billion.

Its last private valuation was $12.4 billion in February.

Berkshire Hathaway  (BRK.A) – Get Report and Salesforce Ventures, a division of Salesforce.com  (CRM) – Get Report, each will buy $250 million the company’s Class A common stock in a private placement. 

Berkshire Hathaway also agreed to buy 4 million shares in a secondary transaction, according to a regulatory filing, which was reported by Bloomberg.

Silicon Valley-based Snowflake filed confidentially for an IPO back in June. The cloud specialist could be one of the larger tech offerings to go public this year.

Snowflake is part of an emerging niche of cloud companies that address the multi-cloud environments that enterprises increasingly rely on: Amazon’s  (AMZN) – Get Report AWS, Microsoft  (MSFT) – Get Report Azure, Google  (GOOGL) – Get Report Cloud Platform or others may be used for different workloads, and enterprises need services that allow for flexibility. 

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