Dropbox Climbs Amid Acquisition Speculation

Dropbox rises amid unconfirmed online speculation that the file-sharing platform is a takeover target.
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Dropbox  (DBX) - Get Report was climbing Monday amid unconfirmed online speculation that the file-sharing platform was a takeover target.

Shares of the San Francisco-based company were rising 7.47% to $24.17 in premarket trading.

Bloomberg reported that the speculation about a potential acquisition appeared on Twitter.

On Friday, the Information posted an article about potential acquisition targets in light of Salesforce's  (CRM) - Get Report recently announced $27.7 billion acquisition of Slack Technologies  (WORK) - Get Report.

The Information said it had "brainstormed a host of acquisition possibilities for 2021 with investment bankers, investors and tech industry executives" and one possible deal involved Oracle  (ORCL) - Get Report or ServiceNow  (NOW) - Get Report buying Dropbox.

Oracle reportedly is moving its headquarters from Redwood City, California to Austin, Texas. Last month, the Information reported that Dropbox CEO Drew Houston has purchased a home in Austin that he plans to make his full-time residence.

"The Oracle announcement that they're moving to Austin, Tx just made everything interesting for a DropBox acquisition," a commenter said on Twitter. "The CEO of DropBox announced earlier this year he was moving to Austin, Tx. Very coincidental indeed."

Several Silicon Valley firms have moved to Austin and the trend has increased during the pandemic. Douglas Merritt, the CEO of software company Splunk  (SPLK) - Get Report, also recently purchased an Austin home.

Last week, Tesla  (TSLA) - Get Report CEO Elon Musk said he had moved to Texas after selling his Bel Air homes earlier this year.

Neither Dropbox, Oracle, nor Salesforce immediately responded to a request for comment.

The Information article also suggested Microsoft  (MSFT) - Get Report could buy MongoDB  (MDB) - Get Report and Cisco  (CSCO) - Get Report could acquire Smartsheet  (SMAR) - Get Report.