Google, Salesforce in talks to form alliance: report

A general view of the Google headquarters in Mountain View, California May 15, 2007. Shares of Salesforce.com Inc. rose nearly 5 percent in pre-market trading on Monday after a report it is in talks with Google Inc. for an alliance that could help them compete better against Microsoft Corp..

NEW YORK (Reuters) - Shares of Salesforce.com Inc. rose nearly 5 percent in pre-market trading on Monday after a report it is in talks with Google Inc. for an alliance that could help them compete better against Microsoft Corp..

According to a report in the Wall Street Journal, the two companies are still working out details of a potential partnership, which is expected to be announced in the next few weeks. The report cited unnamed sources.

The paper said one outcome could be a Web-based offering that integrates some of Google's online services such as e-mail and instant-messaging with those of Salesforce.com, whose customer-relationship management tools help salespeople track their accounts.

Salesforce.com shares rose by around $2.14 to $47.94 in pre-market trading while Google shares were flat at around $470.

Google and Salesforce.com could not be reached immediately for comment.

(Additional reporting by Yinka Adegoke)