In a recent interview with Bloomberg, Dropbox CEO Drew Houston briefly touched upon the company’s estimated ten billion dollar valuation, providing some interesting insight into what the future might hold for the digital storage behemoth. In response to a question concerning how the startup would grow its business, Houston replied by saying,
“What we think about is, Dropbox is moving from keeping your files in sync to keeping your team in sync”
In light of that statement, I’m going to go over three reasons why a Slack acquisition on Dropbox’s behalf would be a good fit and unlock tremendous value for both companies. Although I do not think Slack is looking for a sale or an acquisition any time soon, the question begs to be tackled; Is a Dropbox /Slack merger deal a good idea?
- Slack’s philosophy and customer base fall in line with that of Dropbox’s. With Slack focused on a comprehensive communication tool for coworkers and creative teams, Dropbox would see huge benefits from incorporating its services within its enterprise and client offerings. They also both serve to organize and easily access your files. Slack’s product would easily fit into Dropbox’s family of online tools.
- An acquisition would poise both companies for success. With over five hundred million users and a service reach encompassing 97% of Fortune 500 companies, Dropbox would unlock huge growth for Slack and its 705k daily users, again being that it would directly incorporate its services into all of its file management offerings. Dropbox has so far raised 607 million dollars in funding, making it the perfect parent company, with a proven track record of going from startup to fast growing business.
- With increased competition from Google and Box, Slack could be the tool that gives Dropbox an edge in the fight for marketshare. At current levels, Dropbox leads the fight against Google and Box in terms of paying business customers. At only two years old, Slack is already drawing in funding rounds in excess of one hundred fifty million dollars. The appeal for the service is unquestionable and could be what Drew Houston needs in his plans to grow the business at Dropbox and help establish itself as the undisputed top solution for file storage.
Both companies will likely continue to prosper independently for the foreseeable future, as Slack continues to grow at extreme rates , but it is an interesting idea to ponder. Post your thoughts on my twitter :)