|By Le Williams | 2 years ago|
Atlassian Corporation is selling its corporate chat software to rival Slack Technologies Inc. and taking a small stake in the startup, as they face greater competition from the Microsoft Corporation.
HipChat, the workplace chat app that held the throne before Slack was Slack, is being discontinued. Additionaly discontinuances include Atlassian’s own would-be HipChat replacement, Stride.
News of the discontinuation comes first from Slack CEO Stewart Butterfield. In a series of tweets, Butterfield says that Slack is purchasing the IP for both products to “better support those users who choose to migrate” to its platform.
Butterfield also notes that Atlassian will be making a “small but symbolically important investment” in Slack. Tech Crunch notes that “getting a pre-IPO investment into Slack might end up paying off for Atlassian better than trying to continue competing”.
Atlassian VP of Product Management, Joff Redfern, confirmed the news in a blog post, calling it the “best way forward” for its existing customers. It’s about as real of an example of “if you can’t beat ’em, join ’em” as you can get; even Atlassian’s own employees will be moved over to using Slack.
According to an FAQ about the change, Stride and HipChat’s last day will be February 15th, 2019.
Slack will pay an undisclosed amount over the next three years to acquire Atlassian’s HipChat and Stride assets, chief executives from both companies said. Slack CEO Stewart Butterfield described both the payment and the investment by Atlassian in his company as “nominal” in financial terms but important strategically. He declined to elaborate on the former.