Acquisitions · Amazon

Why would Amazon buy Slack?

Eli Epstein Head of Content at CoFoundersLab

June 15th, 2017

CoFoundersLab Question of the Day

Today, Bloomberg reported that Amazon is considering an acquisition of messaging software Slack, which is reportedly valued at $9 billion.

How will Slack fit in Amazon's stack of services? What is the purpose of acquiring it, especially at Slack's sizable valuation?

Dane Madsen Organizational and Operational Strategy Consultant

June 15th, 2017

AMZN is suing a former employee who has gone to work with collaboration suite tech company in the Seattle area, Smartsheet. The implication made in the legal filings is that AMZN is building cloud tools for businesses. In that light, Slack, with its significant audience, not to mention MSFT's Office 365 tools set as a competitor that makes Azure more interesting, would bring a new set of tools to AWS, moving them to another product set and level and fill holes in the AWS suite that would more tightly embrace the business users. At $9 B this is not a big cost to AMZN and significantly less than MSFT's Linked In acquisition, with an arguably better fit.