Workday’s market value climbs to nearly $51 billion after reports of private equity interest, despite no confirmed deal terms.
Workday (NASDAQ: WDAY) shares jumped nearly 18% last Thursday, marking their best day since 2016, after Reuters reported Silver Lake held months of talks to take the company private. The surge lifted Workday’s market value from $43 billion to nearly $51 billion, though no price or deal terms were disclosed, and neither party commented.
Before the report, Workday’s stock had underperformed amid AI-driven concerns about its seat-based software model and a leadership transition in February. Shares remain 17% below their 52-week high of $249.85, even after the rally. The talks suggest Silver Lake sees long-term value in Workday’s cash flows, though no offer is guaranteed.
The report alone may signal market confidence in Workday’s fundamentals, regardless of whether a deal materializes. Analysts note private equity interest often reflects undervaluation, though leveraged buyout risks persist.