The pressure is piling up on salesforce.com, inc. (NYSE:CRM) after it emerged over the weekend that Elliott Management has built a reported multibillion-dollar position in the group.
The New York-based activist investor will no doubt be joining the chorus of disgruntled shareholders calling for cost cuts in order to kick-start the company's flagging share price.
Elliott's move comes after fellow activist, Starboard Value, disclosed a stake in Salesforce in October and called for an increase in profit margins.
It is currently unclear what Elliott's position on the company is and whether it has made recommendations to the board, said a report in the Financial Times.
Salesforce has seen a significant decrease in market value amid a rebasing of the value of the American tech sector.
Elliott Management is known for tackling technology companies and has a reputation for being one of the best-known activists on Wall Street.
Under the oversight of Jesse Cohn, the firm has become one of the largest and most active software investors in the world. Last year, Elliott helped to assemble takeovers of enterprise software specialist Citrix Systems and media ratings group Nielsen, through its private equity unit, Evergreen Coast Capital.