Where Does Redkix Fit with Facebook?

Workplace premium costs $3 per user

Facebook (FB) recently acquired Redkix, a team collaboration tools provider. Financial details of the deal weren’t disclosed, but some have estimated that Facebook must have paid ~$100 million for the startup. Redkix, a competitor of Slack, provides tools that allow business teams to communicate and collaborate more effectively. Its services include email and team messaging.

Redkix will join Facebook’s Workplace team. The Workplace tool, launched in 2015, is essentially a version of Facebook designed for businesses. Workplace is available on a subscription basis, and more than 30,000 businesses have adopted it. It has a free plan and a paid plan that starts at $3 per user per month. Twitter (TWTR) has also been linked to plans to launch a consumer subscription service based on its TweetDeck product.

Where Does Redkix Fit with Facebook?

Enhancing the workplace appeal

Redkix has an email feature that has been lacking in Workplace, thus enhancing its appeal and potentially helping Facebook attract more customers to the product. Facebook offers Workplace in the enterprise collaboration market, which is poised to grow globally to $59.9 billion by 2023 from an estimated $34.6 billion this year, according to Research and Markets.

Slack aiming for $1 billion in revenues for 2018

Other players in this market include Microsoft (MSFT) and Alphabet’s (GOOGL) Google. Microsoft has Teams, and Google has G Suite, a package of productivity and collaboration tools. G Suite is a component of Google’s cloud computing business.

Slack, a leading team collaboration service, is aiming to generate $1 billion in revenues this year. The service has been targeted for acquisition by several companies, including Amazon (AMZN).