Microsoft feels Salesforce too pricey and not bidding for it

Microsoft has denied rumours that it is weighing a bid for cloud computing firm Salesforce.com, as the tech giant considers the firm's current market valuation on the high side.

Reuters, citing two people familiar with the matter, reported that Microsoft is currently not weighing an offer for Salesforce, and may review a bid for the company in the long term.

One of the sources told the news agency that Microsoft considers Salesforce's current market valuation exorbitant. Microsoft and Salesforce both declined to comment.

Bloomberg earlier reported that Microsoft was evaluating a bid for Salesforce, after the firm was approached by another potential acquirer. However, Microsoft was not in talks with Salesforce, according to the news agency.

Salesforce has been working with financial advisers to find potential takeover offers for it, after the company was approached by a potential acquirer. The company was working with two investment banks to determine a response to approaches, according to the Bloomberg report.

The acquisition is expected to mark an aggressive push into cloud computing – a sector with high growth potential in the coming years – for the buyer. Other possible bidders for Salesforce include Oracle, IBM, Amazon and Germany's SAP.

SAP earlier ruled itself out of the bidding war, with CEO Bill McDermott saying his company had "zero interest" in its software rival.

Daniel Ives, analyst at FBR Capital Markets, earlier opined that Oracle would be the "most realistic" buyer for Salesforce. He said the acquisition of Salesforce had become a "game of high stakes poker" with all the major tech players now vigorously trying to figure out their next move on the Salesforce potential bidding war.