COVID-19 Startups

Verizon To Buy BlueJeans To Compete In Video Conferencing Space

Verizon has agreed to buy enterprise video conferencing startup BlueJeans, the company announced Thursday.

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The acquisition price is reportedly under $500 million, according to The Wall Street Journal.

The deal comes after many more workers have started telecommuting because of the stay-at-home order in response to the COVID-19 pandemic. Zoom Communications has become the video conferencing app of choice for those doing remote work, so now Verizon is in a position to compete for the large number of workers and students who need video conferencing tools. BlueJeans will be integrated into Verizon’s 5G product roadmap, according to the carrier.

“As the way we work continues to change, it is absolutely critical for businesses and public sector customers to have access to a comprehensive suite of offerings that are enterprise ready, secure, frictionless and that integrate with existing tools,” Verizon Business CEO Tami Erwin said in a statement. “Collaboration and communications have become top of the agenda for businesses of all sizes and in all sectors in recent months. We are excited to combine the power of BlueJeans’ video platform with Verizon Business’ connectivity networks, platforms and solutions to meet our customers’ needs.”

BlueJeans, which is based in Mountain View, California, has around $175 million in funding and recently became profitable, according to WSJ. The company’s backers include Battery Ventures and New Enterprise Associates, according to Crunchbase data.

BlueJeans’ employees will become Verizon employees when the deal closes.

Illustration Credit: Li-Anne Dias

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