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Bloomberg
Corporate chatroom startup Slack Technologies Inc. has received recent inquiries about a potential takeover from technology companies including Amazon.com Inc., people with knowledge of the situation said, a deal that would be the internet-commerce giant’s biggest ever.
San Francisco-based Slack could be valued at at least $9 billion in a sale, the people said. An agreement isn’t assured and discussions may not go further, said the people, who asked not to be identified because the matter is private.
Buying Slack would help Seattle-based Amazon bolster its enterprise services as it seeks to compete with rivals like Microsoft Corp. and Alphabet Inc.’s Google. The company’s cloud-hosting unit, Amazon Web Services, in February unveiled a paid-for video and audio conferencing service — Amazon Chime — that lets users chat and share content.
Representatives for Amazon.com and Slack declined to comment. Amazon’s biggest acquisition to date came in 2014, when it agreed to buy video-game service Twitch Interactive Inc. for $970 million in cash to bolster its entertainment offering, according to data compiled by Bloomberg. The Seattle-based company had about $21.5 billion of cash and equivalents at the end of March, the data show.
Amazon has been expanding beyond it’s e-commerce platform, experimenting with food delivery and physical stores and dominating the cloud-storage business. Its $99-a-year Amazon Prime subscription, which includes delivery discounts, music and video streaming and photo storage, keeps shoppers engaged with the website.
Echo, the company’s voice controlled speaker, embeds Amazon even further in people’s lives by making it easy to order from the website or even from a pizza delivery company.
The launch of Chime put it in direct competition with Microsoft’s Skype and Cisco Systems Inc.’s WebEx service in providing conferencing to corporate clients.
The service was added to an increasing roster of AWS products, including security systems, a business intelligence service named Quicksight and hardware to allow customers to securely transfer large amounts of data — all aimed at business clients.