Slack Can Make the Stretch

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Slack Can Make the Stretch
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Heard on the Street: It’s unclear why Slack is forgoing a traditional IPO. What is clear is the messaging platform doesn’t need the money

It is unclear why Slack Technologies is choosing to forgo a traditional initial public offering. What is clear is that the corporate-communications platform doesn’t need the money.

Unlike Pinterest, Zoom Video and Lyft—the three most recent technology companies valued at over $1 billion to go public—Slack is pursuing a direct listing over a formal IPO. In choosing this path, which cuts out middlemen by offering only existing shares directly onto a stock exchange, Slack will save a small fortune in investment-banking fees that...

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