Blue Jeans Network

Company Blue Jeans Network, Inc. - developer of cloud service of a video conferencing.^[1]

History

2020: Verizon purchased BlueJeans for $400 million

On April 16, 2020 Verizon announced acquisition of BlueJeans for $400 million. The bargain was concluded against the background of surge in demand for tools for video conferences in the conditions of COVID-19 coronavirus pandemic.

Under the terms of the agreement, founders and all leadership team of BlueJeans will pass into Verizon and will continue to develop the platform. Non-management employees of a startup will also enter into staff of the American telecommunication giant. It is going to close the transaction in the second quarter 2020.

Verizon announced acquisition of BlueJeans for $400 million

As methods of our work continue to change, for the companies and customers from public sector it is extremely important to have access to a comprehensive set of offers which are ready to work, are safe, reliable and are integrated with the existing tools — the head of department of Verizon Business Tami Erwin said.

To the middle of April, 2020 BlueJeans has more than 15 thousand clients worldwide, the CEO of Verizon Hans Vestberg told CNBC TV channel. According to him, Verizon intends to integrate BlueJeans with the 5G services. It is supposed that such integration will help Verizon to compete better with T-Mobile and Sprint which integrate in one company, CNBC tells.

Vestberg reported that negotiations on acquisition of BlueJeans began approximately one year prior to conclusion of an agreement, however the transaction was forced only after the authorities of the countries began to limit movements on the world because of spread of a new coronavirus. Besides, Verizon the belief pushed to the transaction that video will become an important element during a 5G networks era, Financial Times tells.

The director of research in Gartner Mike Faskiani considers that thanks to purchase services of a video conferencing can be included in base of large business clients of Verizon.^[2]

Notes