The Aussie software giant paid a fortune for a video-messaging tech firm on Friday. But what was behind the deal, and was it a good idea?
which makes software to capture short video memos and presentations, for $US975 million . But that wasn’t all it paid for it. Atlassian shares slid 6.5 per cent on Thursday , when the Nasdaq-listed company announced the purchase, stripping just over $US3 billion from its value, even as the market was basically flat.
The deal also shows that while IPO markets are closed, tech investors are willing to take the cash from a merger, even if it delivers poor results for some of them. Mr Yum and Me&U, the two QR restaurant ordering code companies,Atlassian says it has bought Loom because it can put videos in its existing tools. Software engineers could explain their code with a video in Jira or a user could show exactly where a fault was occurring.
Atlassian co-chief executive Mike Cannon-Brookes said Loom let people communicate in a “deeply, deeply human way” but also had advanced AI. It had a reported 700,000 users in 2019, which shot up to 10 million users in 2021. By 2022, it had 18 million and 25 million today. The company’s last reported capital raise, according to data from the industry statistics provider PitchBook, was a loan from the collapsed Silicon Valley Bank.
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