Mounting concern over how artificial intelligence could disrupt software business models is pressuring enterprise tech stocks, even as takeover interest revives investor sentiment around some beaten-down names. Workday shares rise more than 20% before trading is briefly halted after a report says Silver Lake is in talks to buy the human resources software maker.
Highlights
- Silver Lake enters talks to acquire Workday, triggering a late-session share rally that briefly lifts the company's market value above $53 billion before trading halts.
- Workday stock declines 3% year-to-date and 7% over the past year, mirroring sector-wide pressure from concerns about artificial intelligence disrupting software business models.
- Founder Aneel Bhusri returns as CEO in March following Carl Eschenbach's departure, with Bhusri's connections to Silver Lake seen as potential catalysts for a deal.
Takeover talks lift Workday valuation
As reported by CNBC, citing Reuters, private equity firm Silver Lake is in talks to acquire Workday, sending the human resources software maker's shares sharply higher in late afternoon trading. The rally briefly pushes the company's market value above $53 billion before trading is halted.Workday and Silver Lake do not immediately respond to CNBC's requests for comment. The move comes after a difficult stretch for software companies, which face intense pressure in recent months on concerns that artificial intelligence tools could upend established business models.
Leadership changes and sector pressure
Workday's stock is down about 3% this year and 7% from a year earlier, reflecting broader unease across the software sector. The company regains founder leadership in March, when co-founder Aneel Bhusri is renamed CEO after Carl Eschenbach steps down.Bhusri previously serves in several senior roles at Workday, including as CEO and co-CEO. Brent Thill tells CNBC's Power Lunch that Bhusri and Silver Lake's Egon Durban know each other well through multiple connections, adding that a deal could make sense given how badly software stocks are hit.
Our earlier coverage of July’s U.S. producer price data and related market moves highlighted how cooling wholesale inflation helped cement expectations that the Federal Reserve could keep rates unchanged at its mid-September meeting. It also noted that investors were increasingly focused on tech and AI-linked valuations, with company-specific reactions underscoring how sensitive the sector is to both policy signals and perceived disruption risks.
Latest KKR & Co. News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
