Slack Value Said to Rise to $16B in Pre-Listing Deals

The transcript discusses Slack's preparation for a direct listing on the New York Stock Exchange, highlighting investor interest and comparisons to Spotify's similar approach. It explains the benefits of direct listing, such as no lockup period and immediate stock sales for employees, and contrasts it with traditional IPOs. The transcript also explores market enthusiasm for Slack, driven by its strong growth and performance, and compares it to other companies like Pinterest and Airbnb.

What is the main reason for the high demand for Slack's stock?

• Investors see a lot of growth potential in Slack.

• The company is planning a traditional IPO.

• Slack is merging with Pinterest.

• Slack's stock price is decreasing.

How does a direct listing differ from a traditional IPO?

• It allows current shareholders to sell immediately.

• It mandates a roadshow for raising capital.

• It requires additional stock to be released into the market.

• It involves a lockup period for employees.

What is one of the goals of releasing stock on the secondary market before a direct listing?

• To increase the company's valuation.

• To discover the appropriate price range for shares.

• To merge with another company.

• To reduce the number of shareholders.

Which condition makes a direct listing favorable for a company?

• The company needs to raise a lot of capital.

• The company is not well-known.

• The company has a lot of cash on hand.

• The company is planning a merger.

Why might a company choose a direct listing over a traditional IPO?

• To release additional stock into the market.

• To increase the lockup period for employees.

• To avoid the marketing associated with an IPO.

• To conduct a roadshow.