In a groundbreaking move to fortify its position as a pioneer in team collaboration software, Atlassian is set to acquire asynchronous video messaging platform, Loom, for a whopping $975 million. This acquisition promises to blend Loom’s renowned video capabilities with Atlassian’s robust suite of collaboration tools, especially Jira and Confluence.
Loom, once valued at $1.53 billion after its $130 million Series C in May 2021, provides an intuitive platform for users to communicate using short videos that combine screen captures and live camera feeds. These videos offer a richer context than traditional textual explanations, especially useful for distributed teams. As of recent data, Loom boasts over 25 million users worldwide and facilitates over 5 million video conversations monthly.
Mike Cannon-Brookes, Atlassian’s co-founder and co-CEO, highlighted the pivotal role of asynchronous video in the future of team collaboration. “With Loom’s integration, we foresee engineers logging visual issues in Jira, HR teams personalizing onboarding with welcome videos, and leaders establishing broader connections using tailored video updates,” stated Cannon-Brookes.
Loom’s journey began in 2015, and since then, it has raised over $200 million in funds, attracting support from industry leaders like Instagram co-founders Kevin Systrom and Mike Krieger and venture capital titans Sequoia and Kleiner Perkins. Loom’s customer roster is impressive, featuring giants like Ford, Tesla, Amazon, and Disney.
Joe Thomas, Loom’s CEO, expressed optimism about the acquisition, envisioning an accelerated mission to enhance team communications. The synergy between the two companies promises to usher in a new era of efficient team collaboration, harnessing AI capabilities for video transcripts, document summaries, and innovative workflows.
However, the news did make waves in the stock market, with Atlassian’s shares dropping 6.5% on October 12, 2023. The acquisition is set to be financed using Atlassian’s cash reserves, aiming for closure in the third quarter of the upcoming year, pending regulatory endorsements.