Atlassian, best known for its collaborative work tools like Trello and Jira, is acquiring video messaging service Loom for $975 million. This acquisition comes at a time when the value of Loom, once valued at $1.53 billion in May 2021, has seen fluctuations, according to TechCrunch.
Loom boasts 25 million customers and facilitates over 5 million video conversations monthly. The company is viewed by Atlassian as a beneficial collaboration tool for its existing products including Jira and Confluence.
“We expect people to be able to work from home, from a café, from an office, but we don’t really care where they do their work – what we care about is the output that they produce,” co-CEO of Atlassian Scott Farquhar told Australia’s 60 Minutes program in August. “I might come into the office about once a quarter,” as reported by Fortune.
According to Tech Crunch, Mike Cannon-Brookes, Atlassian’s co-founder and co-CEO, emphasized the importance of asynchronous video as the “next evolution of team collaboration.” The integration of AI technology, offering features such as video transcripts and summaries, further boosts the potential of this collaboration.
Loom’s journey has not been without challenges. Despite raising over $200 million since its inception in 2015 and having the backing of industry giants like Instagram co-founders and renowned VC firms, the company has faced many hurdles. A notable challenge was finding a balance between free and paying users, which might have led the company to lay off 14% of its workforce last June.
This major acquisition is more than just a business transaction; it’s a projection of the changing dynamics of the workforce. As companies around the world grapple with the challenges and opportunities of remote and hybrid work, tools that help facilitate seamless communication and collaboration are more critical than ever before. Atlassian’s move suggests a belief by the company that there will be a continued relevance and growth of such tools in the years to come.