Friday Markets: Salesforce Buys Own, Red Lobster Restructures, Nasdaq Rises

Thursday saw further losses for two of the three major U.S. stock indexes, extending a recent downtrend. The S&P 500 slipped 0.3%, closing at 5,503.41, marking its third consecutive day in the red. The Dow Jones Industrial Average also experienced a significant decline, falling 0.54% to end the session at 40,755.75. On the other hand, the Nasdaq Composite stood out, rising 0.25% to 17,127.66 after climbing as high as 1.2% during the day.

Premarket Movers:

Salesforce to Acquire Own for $1.9 Billion

In corporate news, Salesforce (NYSE:CRM) has announced plans to acquire the data protection company Own for $1.9 billion in cash.

Own, previously known as OwnBackup, specializes in data management solutions.

This acquisition marks a significant step for Salesforce, which had paused major mergers in recent years. CEO Marc Benioff previously stated that the company had disbanded its mergers and acquisitions committee. However, this deal, expected to close in the fourth quarter, could signal a shift toward more aggressive expansion.

Salesforce has also recently disclosed plans to acquire two other startups, PredictSpring and Tenyx, further emphasizing its growth strategy.

Red Lobster Exits Bankruptcy with New Leadership

Red Lobster is emerging from bankruptcy protection after a court approved its restructuring plan on Thursday.

The seafood restaurant chain, which filed for Chapter 11 in May, will now be acquired by RL Investor Holdings.

Former P.F. Chang’s CEO Damola Adamolekun will take the helm of Red Lobster, replacing current CEO Jonathan Tibus, who is set to leave. Adamolekun expressed optimism, stating, “This is a great day for Red Lobster,” and outlined plans for reinvigorating the brand, including a commitment of over $60 million in new funding. With fresh investment and leadership, the company hopes to reclaim its position as a leading name in the casual dining sector.