A New Era In Team Communication

Atlassian has agreed to acquire video communication platform Loom for $975 million. 

The acquisition will ramp up Loom’s asynchronous video collaboration tools to tap into the demand fueled by the adoption of hybrid work.

The journey to unicorn status

Loom is an asynchronous (async) video messaging tool that helps users communicate through instantly shareable videos.

Founded by Vinay Hiremath, Shahid Khan, and Joe Thomas in 2015 in San Francisco, CA, it boasts 25 million users in 1.8 million workplaces.

The platform became increasingly popular during the pandemic, with a $1.53 billion valuation in May 2021, when remote work peaked. It attracted notable customers such as Ford, Tesla, Disney, Walmart, Goldman Sachs, and Amazon.

However, last year, the video platform laid off 34 employees, 14% of its total staff, impacting employees across product and people operations.

The Atlassian Acquisition

Atlassian has announced it has agreed to acquire Loom for about $975 million, consolidating Loom into its platform.

“By integrating Atlassian’s and Loom’s investments in AI, customers will be able to seamlessly transition between video, transcripts, summaries, documents, and the workflows derived from them,” the company stated.

According to Bloomberg, the deal is roughly the size of Atlassian’s previous 20 acquisitions combined. The deal is expected to close in the quarter ending March 2024 and will be funded with existing cash balances.

“Atlassian has been a true believer in Loom since our early says. We think this acquisition marks the beginning of a critical breakout growth chapter for Loom,” said Hiremath, Loom’s co-founder and CTO.

“To put the longevity and growth of the relationship into perspective, Atlassian was all-in on Loom when we were doing just under 1m looms per month in 2019. We are now doing over 7 million looms recorded per month.”

Loom is to remain available as a standalone product.