Verizon Expands 5G Plans With BlueJeans Acquisition

Need to Know

• Verizon Business has announced it is acquiring video conference and event platform BlueJeans.
• The move adds to Verizon’s already-expansive communications portfolio. As one of the leading telecom companies in the US, Verizon counts over 150 million total subscribers to its services.
• The two had already been working together, as Verizon was offering BlueJeans to customers under its communications portfolio.
• BlueJeans has over 15,000 enterprise clients, including Facebook.
• The acquisition has been valued at “less than $500 million” according to Reuters.

Analysis

Verizon Business is expanding its communications portfolio by diving into online video conferencing and events with the acquisition of BlueJeans.

BlueJeans is a leading video-conferencing platform with over 15,000 enterprise clients, including Facebook. Though BlueJeans trails other major video competitors such as Zoom and Google in terms of total users, BlueJeans has a wide enterprise reach.

Verizon will now be able to offer BlueJeans conferencing capabilities to even more of its 150 mllion+ customers. The two had previously been working together, but now thanks to the acquisition, the rollout for interested parties will be seamless.

“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,” said Tami Erwin, CEO of Verizon Business.

“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.”

Perhaps the biggest aspect of this purchase is Verizon’s ability to integrate BlueJeans into its 5G product roadmap. As the next generation of telecom communication rolls out, BlueJeans will offer secure and real-time engagement solutions for a variety of high growth areas, including telemedicine, online education, and field service work.

“The combination of BlueJeans’ world-class enterprise video collaboration platform and trusted brand with Verizon Business’ next-generation edge computing innovation will deliver highly differentiated and compelling solutions to our joint customers,” said Quentin Gallivan, CEO of BlueJeans Network.

This acquisition also comes at a point when all eyes are on teleconferencing solutions. BlueJeans rival Zoom has exploded in popularity during the COVID-19 pandemic, shooting up from 10 million users to over 200 million, with a current valuation of $42 billion. There is no doubt that Verizon sees the value in owning a secure and capable video conferencing tool that can connect both enterprises as well as consumers together.