On Friday, the business messaging company Slack filed paperwork confirming it will go public through a direct listing of its shares. Slack has the chief financial officer of another company, Spotify’s Barry McCarthy, to thank for making the process a little smoother.
That’s because Mr. McCarthy last year shepherded Spotify through the streaming music service’s own direct listing, an unusual method of going public that allows companies to avoid some of the restrictions of initial public offerings. In an interview with The Information, Mr. McCarthy discussed the direct listing process, Spotify’s motivations for ditching the tradition of an IPO and how Slack’s listing could be a pivotal moment that encourages other tech companies to follow suit.
“If they can do it, then many people can do it,” he said.