Atlassian acquires video messaging platform Loom for $975M to boost collaboration tools

Atlassian has announced the acquisition of Loom, an asynchronous messaging platform, in a deal worth $975 million. Loom, with its 200,000 paid customers, is currently generating approximately 5 million videos per month.

The acquisition is part of Atlassian's strategy to enhance collaboration across its platform, specifically within its Jira and Confluence tools. The integration of Atlassian and Loom's AI investments is aimed at facilitating a smooth transition between video, transcripts, summaries, documents, and the workflows derived from them, according to the company's co-founders.

Despite the acquisition, Loom will not immediately be embedded into Atlassian's platform. Atlassian's co-founder, Mike Cannon-Brookes, stated that while Loom will continue to be sold as a standalone product, efforts will be made to integrate it across Atlassian's platform in order to add human context to work done in any of their cloud products.

The acquisition is slated to be finalized by the quarter ending in March 2024.