Slack is planning a 2019 IPO valuing the company around $7 billion

Not Shack, Slack.

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Slack Technologies, Inc. is rumored to be preparing an IPO for the first half of next year. The 2019 initial public offering is expected to value the company around $7 billion. A Slack representative said the company does not comment on "rumors and speculation." 

Just this August, Slack raised $427 million in a funding round at a valuation over $7 billion. The company faces competition from the likes of much larger companies like Microsoft and Google, and it is somewhat surprising that they have not been acquired as of yet. The Wall Street Journal reports that Slack has yet to hire underwriters for an IPO, but they are actively preparing to bring the company to public markets. Slack is a very popular online virtual office chat room and collaboration service that is rumored to have over 8 million daily active users (including Shacknews).

Asif Khan is the CEO and majority shareholder of Shacknews. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif is a CPA and was formerly an investment adviser representative. After much success in his own personal investments, he retired from his day job in financial services and is currently focused on new private investments. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo. Asif first frequented the Shack when it was sCary's Shugashack to find all things Quake. When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports.

From The Chatty

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    October 2, 2018 9:15 AM

    Asif Khan posted a new article, Slack is planning a 2019 IPO valuing the company around $7 billion

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      October 2, 2018 9:36 AM

      I think a big reason Slack hasn't been acquired yet is because its founder, Stewart Butterfield, learned a costly lesson when he sold his other invention, Flickr, ten years ago to Yahoo! for the paltry sum of $35 million

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      October 2, 2018 9:37 AM

      Raise your hand if you read that as “Shack is planning a 2019 IPO...”

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      October 2, 2018 9:45 AM

      So, buy buy buy?

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      October 2, 2018 9:54 AM

      Worth 7bn, Can't be bothered to add a dark mode even though you can mod one yourself in about 2 minutes

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      October 2, 2018 10:09 AM

      I don’t use it. What do they do that other companies can’t replicate?

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      October 2, 2018 10:09 AM

      I'll buy in. Whenever slack is down, I know about it. Not because I can't do my job (we don't use slack) but because the rest of the world complains about not being able to "work" without slack.

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      October 2, 2018 10:25 AM

      Having used Slack, I'm still not entirely sure how it's different than IRC?

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        October 2, 2018 10:36 AM

        It's a lot easier to use

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        October 2, 2018 10:38 AM

        it's prettier. that's it. it runs like shit and doesn't even have basic theme/color changes

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          October 2, 2018 10:53 AM

          it does a million things that irc doesn't do

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          October 2, 2018 4:16 PM

          and doesn't even have basic theme/color changes

          Dude, what? Slack's had the ability to change the color theme via presets (or import custom colors) for years.

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          October 2, 2018 7:40 PM

          Lol at “that’s it” it’s waaaay more professional than IRC.

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        October 2, 2018 10:39 AM

        At this point the difference is in the integrations with other products. They managed to get in at the right time and get people on board with creating rich integrations. On the surface, sure, it's "just like IRC" in that you send text to other people, but the integrations are the important part.

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        October 2, 2018 10:54 AM

        Integrations, waaaaaay better user management, much more powerful client.

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        October 2, 2018 10:55 AM

        The API hooks alone make it way different than IRC. If you're only using it as a chat room, you're severely underutilizing the platform.

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        October 2, 2018 11:53 AM

        history, search among other things already mentioned

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        October 2, 2018 12:35 PM

        It's pretty, easy to use, and the web client is so good it practically makes the desktop and mobile clients obsolete.

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          October 2, 2018 2:54 PM

          The desktop client is just the website client in a wrapper.

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        October 2, 2018 1:30 PM

        how many companies have you worked at that used IRC?

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          October 2, 2018 2:07 PM

          I just figured that's because it was super old and tech people have an aversion to older tech. I've only really used Slack at this company and so far it doesn't really do much more than IRC. But we do only really use it for chat and not much else.

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        October 2, 2018 1:42 PM

        No xdcc send commands

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        October 2, 2018 2:24 PM

        Emojis.

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        October 2, 2018 2:27 PM

        this is like saying, why use firefox, when lynx works fine

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        October 2, 2018 2:50 PM

        IRC is hasnt been a viable broad consumer product for like 20 years.

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        October 2, 2018 7:52 PM

        Wake me up when IRC has giphy

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      October 2, 2018 10:32 AM

      Do they have an actual revenue stream or they plan to make money via ads and selling user data (like facebook) ?

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        October 2, 2018 10:57 AM

        i have no numbers to back this up, but i think they make bank on enterprise clients. $12.50/month/user adds up quick.

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        October 2, 2018 11:44 AM

        It's enterprise software. You pay a subscription fee per user.

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      October 2, 2018 10:33 AM

      At first I thought it said Shack.

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      October 2, 2018 10:36 AM

      ... so how much would a Shack evaluation be? 7 million? 7 hundred thousand?

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        October 2, 2018 10:54 AM

        With all the work TMWTB has put in it over the past 5 years I'd say it's at least worth two ham sandwiches and a bag of chips.

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          October 2, 2018 11:47 AM

          I am aiming for at least a 100 ham sandwich return on investment.

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            October 2, 2018 12:14 PM

            What is the LOLs to ham sandwich conversion rate these days?

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            October 2, 2018 4:13 PM

            The lunch box on this guy!

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          October 2, 2018 12:38 PM

          Do those ham sandwiches come with mustard?

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            October 2, 2018 12:39 PM

            He might be able to swing it since the site rebuild. Maybe alternatively a small rc cola, probably not both though.

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      October 2, 2018 10:37 AM

      I don't know why, but Slack and Discord and all the modern messaging services don't appeal to me at all. If I can't iMessage you then you might as well not exist.

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      October 2, 2018 10:38 AM

      ACK I misread that as SHACK having an IPO at 7 Billion! I thought we're going to have some pretty slick shackmeets. Where will our first $100 million shack shareholder party be at? Milleh's house in Halifax??

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      October 2, 2018 10:55 AM

      I really wish they would do something like Discord's Nitro pricing. Totally different user markets, but I still wish for it.

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      October 2, 2018 4:51 PM

      I think Microsoft will eat their lunch over the next 5 years. Teams in good right now and keeps getting better

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        October 2, 2018 6:30 PM

        teams is just a vector to get you to use all their O365 services (sharepoint online; onedrive; etc).

        it's literally a skin for O365 infrastructure. which is fine - it's a good skin - but to really leverage teams you need to go all-in with at least an E3 license (if not E5).

        with slack you can throw it up and only use slack to decent effect. it's a lot cheaper and requires less planning and support.

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          October 2, 2018 9:10 PM

          how is it cheaper? teams is free with even an E1 subscription. Slack plus gsuite costs more than E1 by far. And unless you are doing telephony, there is no planning and support for team. not any more than slack IMO.

          I wouldn't call teams a skin for 0365 - I would call it a rich client for o365. When you combine office + SPO + PowerApps + flow + PowerBI and serve that up in a collab space that teams is, that is super powerful vs. the out of the box slack. I won't argue against teams is all about o365 - we agree there. But let's be honest - MS has EA's of at least E3 with 450+ of the F500, and it's like 800+ of the F1000. Gsuite is well in SFO and in startups, but o365 is dominating midmarket and enterprise.

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        October 2, 2018 7:34 PM

        I was going to say that. We use Teams daily now and it’s been great. It feels like the enterprise package Microsoft can offer is just too good to pass up. Word and Excel is already pretty much everywhere, then add exchange and teams, some potential linkedin integration now since they own it, azure etc... I feel like on an individual product level, sure some companies would pick Slack over Teams, but when they look at their ecosystem of software vs what they need, having one gigantic fully integrated suite for everything is increasingly appealing.

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        October 2, 2018 9:31 PM

        Except for companies that aren’t on the Microsoft train.

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          October 3, 2018 4:26 AM

          Is their 7 billion worth of businesses not using Microsoft?

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      October 2, 2018 7:28 PM

      I don't know if you guys have ever listened to this NPR show before, but this is an hour long episode where they interview the Slack founder and he talks about the origins, all the way back to before Flickr.

      https://www.npr.org/2018/07/27/633164558/slack-flickr-stewart-butterfield

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        October 2, 2018 7:29 PM

        I really enjoyed that episode. Do you remember there ever being buzz about both games he tried to make? I had never heard of them.

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      October 2, 2018 9:36 PM

      Hey cool job with making this thread purple and “pinned” on the iOS app. It’s classy without being obnoxious.