|Why Slack Will Be Acquired|
This time last year, Slack Technologies, the popular workplace chat provider, was one of the most eagerly anticipated public tech debuts of 2019. That seems like a long time ago. Since Slack went public in June, its stock has dropped about 40%.
The reason for the slump: Revenue growth at Slack is slowing and competition is intensifying, especially from Microsoft. The tech giant is relying on a familiar tactic—bundling a Slack killer with a widely used existing product, its Office 365 suite of apps. Given that competitive pressure, I predict 2020 will be the year that—after years of acquisition speculation—a larger tech company will finally buy Slack.
Potential suitors could include Amazon—which has reportedly eyed Slack in the past—and Google. Both companies are top providers of cloud computing services and could plug Slack into their cloud units to increase the revenue they generate from online applications.
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