At the midpoint of that range, based on a fully diluted share count, its valuation would be $7.4 billion, well below the $10 billion valuation where the company had raised private capital in 2014.
Additionally, the deal sees Dropbox integrate with the Quip, Salesforce's collaborative productivity software suite subsidiary. Recently, Dropbox was given a $10 billion valuation by privates investors in a private funding round.
But don't expect Salesforce to swoop in and buy Dropbox on the eve of the IPO, the way Cisco acquired AppDynamics right before its IPO in January 2017.
"I've learned not to put too much stock in the pre-IPO pricing dynamic", he said. Last year the company grew revenues by 30% year over year but still lost $112 million, about half its 2016 loss and about a third of its 2015 loss. While the company "has helped bring the concept of cloud storage services to the masses", the publication said, only around 11 million of its customers are paying users. It also has $50 million for Salesforce-specific artificial intelligence, and a $100 million fund for European and Israeli cloud startups. On Monday, it set an estimated range of $16 to $18 per share for the offering.
There will be a total of 36 million shares up for grabs in the Dropbox IPO.
While the size of the investment is intriguing to analysts, Salesforce' interest in Dropbox isn't unusual in and of itself.
Dropbox also will reverse-split the current shares outstanding to inside investors at a ratio of 1.5 to 1.
Fears were growing yesterday that investors are becoming anxious about big technology listings after Dropbox said that it would float at a lower valuation than had been expected. The company said it generates average revenue of $111.91 per paying user.
In an earlier report, AMEinfo reported that Dropbox filed for an IPO with the SEC to be listed on NASDAQ over the coming weeks.