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Reportedly, Microsoft was on the brink of paying $8 billion bid for the enterprise messaging app and Skype competitor Slack.
According to undisclosed sources, Microsoft recently launched an $8 billion bid for the business messaging startup, but the offer was soon dropped as the tech giant steered to improving its own messaging app Skype.
Slack, which counts 2.3 million daily users of whom more than 670,000 are paying for the service, recently announced new voice and video chat.
According to sources, the deal was scrubbed because it failed to gather enough support within the company. Apparently, neither Bill Gates and Microsoft’s chief executive Satya Nadella were impressed with the acquisition.
Both executives thought that it is a wiser idea to invest more in Skype than burning $8 billion on Slack. If Skype becomes more competitive, it could become the first choice for enterprise customers by default.
But Slack is heavily courted by other tech firms, too. In 2015, it had betwen 8 and 10 acquisition offers. Yet, Microsoft’s bid was by far the highest though the startup was valued last spring to $2.8 billion.
But the idea of buying Slack for the hefty sum belongs to Microsoft’s EVP of apps and services Qi Lu. But since Microsoft has a long history of acquisitions in the field of enterprise collaboration, it basically has all the necessary tools to build a Slack-like app without making a new acquisition.
Nevertheless, Slack has some competitive edge against Microsoft’s Skype which made it so popular among enterprise users. It loads really quickly and allows users to communicate with each other in the blink of an eye.
Plus, it is compatible with a plethora of business-oriented apps. People can use Slack to share files and keep an eye on the progress of complex projects without additional hassle. Users can also use the service to keep each other entertained for some brief moments that is.
You can now also order an Uber or Lyft ride from the app, and the firm heavily invests in developers and creative ideas to make the app more competitive. And the approach paid off as more than 2 million people use it at their workplace every day though the service is only 2 years old.
Skype for Business is now trying to catch up on Slack. It recently added the possibility of group video calling for Android and iOS, and even tested the possibility of integrating Skype with Slack. The company also seeks to make the app available on multiple platforms to “break down communications barriers,” as one Microsoft executive put it.
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