Shopify Acquires Threads.com: A Closer Look

Introduction

Shopify has recently acquired Threads.com, a Slack alternative that received backing from Sequoia. The terms of the deal have not been disclosed, but it has been announced that the Threads.com team will be joining Shopify.

Background

Threads.com, which emerged from stealth in 2019 with $10.5 million in funding, gained significant attention after Meta launched a social network with the same name. This led Threads.com to consider selling its domain as it would have had to rebrand if it remained independent.

Acquisition

Several companies approached Threads.com for acquisition when Meta's social network gained traction. Ultimately, Threads.com chose Shopify for the opportunity to scale and innovate within the company.

Impact of Meta's Threads

Meta had previously launched another product named Threads, an Instagram companion app that was later shut down. Threads.com's app experienced a surge in downloads as many users were initially confused between the two Threads offerings.

Threads.com's Growth

Threads.com's app saw a significant increase in downloads globally, with a vast user base on both iOS and Android platforms. The term "threads" has become synonymous with online communication, highlighting the importance of this acquisition.

CEO Statements

Rousseau Kazi, co-founder and CEO of Threads.com, expressed the power of the term "threads" in the online space. Shopify's CEO Tobi Lutke welcomed Kazi and his team, although details about the integration of Threads.com within Shopify have not been disclosed.

Conclusion

The acquisition of Threads.com by Shopify marks a significant development in the business communication space. With the expertise of the Threads.com team now part of Shopify, it will be interesting to see how this integration enhances Shopify's offerings in the future.