Salesforce CEO downplays chatter of sale to Oracle

By Jim Finkle

BOSTON (Reuters) - Salesforce.com Inc (CRM.N) Chief Executive Marc Benioff downplayed persistent speculation that bigger rival Oracle Corp (ORCL.O) may buy his Web-based software company.

Oracle CEO Larry Ellison was an early investor and one-time board member in San Francisco-based Salesforce but Benioff told Reuters on Monday: "If he wanted to buy it, he would have."

Benioff said his own company remained on the prowl for acquisition opportunities. Salesforce is keen on acquiring companies that can bolster its own portfolio of products on customer service, sales automation, and on technology that will allow businesses to craft their own Web-based software, the executive said.

Benioff declined to say whether he had ever talked to Oracle's chief about selling Salesforce, saying he never discusses such matters.

Oracle spokeswoman Deborah Hellinger declined comment.

Even if Ellison were interested in Salesforce, it would be tough for him to make any overtures now because Oracle is getting ready to close its $7 billion purchase of ailing computer maker Sun Microsystems Inc (JAVA.O).

It is a complicated transaction for Oracle, the world's No. 3 software maker, which has little experience in the hardware industry.

Benioff pushed Ellison off Salesforce's board nine years ago after Oracle started to develop rival products.

"I basically had to fire him," Benioff said of Ellison, whose firm has become a bitter rival as Salesforce has grown into a company with annual sales topping $1 billion.

Benioff founded Salesforce based on an idea that came to him while he working as an executive at Oracle.

Ellison contributed $2 million in seed money to the company, which pioneered a field that became known as software as a service, or SaaS. It is now one of the fastest-growing areas in the technology sector.

Even though the two men have their differences, they remain friends, Benioff said.

"He calls me. I call him," Benioff said. "I respect him. You have to bow to him. He is incredible."

Benioff said that he is always looking to make acquisitions, but that Salesforce.com has only done about half a dozen relatively small deals because it is tough to find the right match.

Benioff stressed that he was not restricting his search to companies of any particular value, adding that his company has about $1 billion in cash reserves.