Shopify, the popular e-commerce platform, has made an acquisition that could have a significant impact on its future. The company has acquired Threads.com, a startup that offers a business communication tool. While the terms of the deal were not disclosed, Threads.com has announced that its team will be joining Shopify.
The acquisition comes after Meta, formerly known as Facebook, launched its own social network called Threads. This move by Meta prompted Threads.com to consider selling its domain name. If Threads.com had remained independent, it would have had to rebrand to avoid confusion with Meta’s Threads. However, the startup chose to sell the domain and join forces with Shopify instead.
Threads.com launched in 2019 with $10.5 million in funding and quickly gained attention. Meta’s launch of its Threads social network brought even more visibility to the startup. Interestingly, Meta had previously released another product named Threads, an Instagram companion app that was ultimately shut down in 2021.
According to Threads.com, several companies approached them with acquisition offers while Meta’s social network was gaining traction. Ultimately, the startup decided to go with Shopify because it provided an opportunity to “tinker at scale.” The team at Threads.com expressed excitement about joining a company where they can experiment and innovate on a larger scale.
The acquisition of Threads.com is particularly significant for Shopify because it already owns threads.net. By acquiring Threads.com, Shopify can consolidate its brand presence and ensure that customers looking for its services are directed to the right platform.
Threads.com’s app saw impressive download numbers following Meta’s launch of its social network. The app received 880,000 downloads on iOS alone between July 6 and July 12, according to data from analytics firm data.ai. Additionally, the Android version of the app surpassed one million lifetime downloads.
Rousseau Kazi, co-founder and CEO of Threads.com, expressed the power of the word “threads” as an internet native term. He believes that using threads is the best way to stay connected in the digital world. Kazi praised Meta’s choice to use the term “threads” for its social network, highlighting its effectiveness in representing a digital town square.
Shopify CEO Tobi Lutke welcomed Kazi and his team but did not provide specific details on how Threads.com will be integrated into Shopify’s platform. However, this acquisition presents an opportunity for Shopify to enhance its communication capabilities for its merchants, potentially improving their overall experience and success on the platform.
Overall, Shopify’s acquisition of Threads.com demonstrates the company’s commitment to growth and innovation. By bringing on the talented team from Threads.com, Shopify can leverage their expertise in business communication to further enhance its platform and provide even more value to its customers.