Amazon Inc. maybe interested in steering the wheel of Slack, a messaging startup that bundles chats with real-time messaging, archiving and search services, to mention a few. It is rumoured that Amazon, which provides online retail services for consumers, sellers, enterprises as well as content creators is among other internet companies that are keen about a possible takeover for the corporate chat room firm.
People who have the details of the matter at their fingertips say Slack’s valuation is at least $9 billion. The same insiders have alluded that negotiations are underway, but there is a possibility that discussions may not go ahead.
In 2016, Slack Funding gave the chatroom startup a $3.8 billion valuation after raising $200,000. The startup, which pushed its corporate-based messaging software to customers in 2013, was motivated by need to offer a centralized system for internal communication for cross-platform openness. Its quick leaps in the technology business has attracted more corporate users. To keep up with new trends, Slack launched an enterprise version of its software that aids collaboration among companies with thousands of employees. The launch was done in early 2017.
Slack’s popularity has fueled the rise of similar products from competitors, including Microsoft that launched Teams, a chat platform for the organization’s Office 365 cloud service.
Statistically, Slack has an edge over similar products, with up to 5 million daily users. Out of the five mil, 1.5 million pay for the service that augments the platform with more unique features.
As of January 31, Slack has an annual recurring revenue of $150 million.
It should be noted that technology acquisitions are the new norm in the internet space. Tech deals and buyouts happen all the time, with experts predicting that more consolidation will take place in the security industry in coming days. Increased prevalence of cyber intrusions and breaches is said to accelerate more acquisitions. Lastly, IoT, AI as well as big data segments may see consolidation in the future.
