Verizon To Buy Video Conference Co. BlueJeans Network

In the last few weeks, Zoom Video Communications Inc ZM and other teleconferencing services saw sudden surges in business as millions of telecommuters flooded the networks.

Now, overwhelmed by FOMO, Verizon Communications Inc. VZ is getting in on the action.

The telecom leader will finalize a deal discussed since 2019 to supplement its 5G network with the cloud-based BlueJeans Network, according to a Thursday press release.

"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 the statement. "Collaboration and communications have become top of the agenda for businesses of all sizes and in all sectors in recent months.”

Why It's Important

Verizon plans to tap into BlueJeans’ 15,000-customer network and to leverage the platform for telehealth, education and remote training services, according to The Wall Street Journal.

The terms of the acquisition were not disclosed, but a WSJ source suggested a price south of $500 million. The transaction is scheduled to close in the second quarter, at which time Verizon will subsume BlueJeans’ core management team and employees.

The announcement prompted a 2% decline in Zoom shares (although the stock has since pared those losses) and a 2.1% rise in Verizon.

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