Workday's stock experienced a significant increase, rising more than 18% after news emerged that private equity firm Silver Lake is in discussions to acquire the human resources software company. This surge led to multiple trading halts, and the company's market capitalization exceeded $50 billion.
The talks have reportedly been ongoing for several months, although neither Workday nor Silver Lake provided immediate comments on the matter. The backdrop for this interest includes concerns about how artificial intelligence could disrupt traditional software business models, which have negatively impacted Workday's stock performance in recent months.
Despite a recent rebound, Workday shares are still down 7% year over year. The company's leadership has also seen changes, with co-founder Aneel Bhusri returning as CEO after Carl Eschenbach's departure.
Analyst Brent Thill noted the strong connections between Bhusri and Silver Lake's Egon Durban, suggesting that the acquisition could be a strategic move in a sector that has faced significant challenges. In May, Workday had reported better-than-expected financial results and raised its forecast, citing positive impacts from AI developments