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Will BlueJeans Redefine Verizon's Portfolio Amid COVID-19 Woes?
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Verizon Communications Inc.’s (VZ - Free Report) Business segment yesterday announced that it has inked an agreement to acquire San Jose, CA-based video conferencing company — BlueJeans Network. Financial terms of the deal were not disclosed by the parties, but according to The Wall Street Journal, which first reported the news, the telecom and media giant is paying less than $500 million. The transaction, subject to customary closing conditions, is expected to close in the second quarter.
Founded in 2009, BlueJeans has almost 15,000 business clients and is one of Zoom Video Communications’ (ZM - Free Report) rivals. The move was made in response to Zoom’s soaring popularity as people are working remotely because of the coronavirus pandemic. But Zoom has been charged with legitimate security concerns, including widespread instances of ‘Zoombombing’, where unwelcomed guests caused disorder in a meeting.
In this context, Zoom updated its iOS app last month to remove code that sent device data to Facebook . Also, the company had to rewrite parts of its privacy policy after it was discovered that users’ personal information could be used to target ads. BlueJeans also witnessed a spike in usage in the past month. Unlike Zoom and Microsoft’s (MSFT - Free Report) Skype video calling service, BlueJeans doesn’t have a free version and is primarily aimed at business users.
BlueJeans currently serves a variety of business segments that range from small organizations to some of the world’s largest multinational brands. The buyout will certainly expand Verizon’s unified communications portfolio and bolster its business group, as the wireless carrier continues to roll out 5G networks nationwide. It combines BlueJeans’ trusted meeting platform with Verizon’s communications as a service business immediately.
Furthermore, customers will benefit from a BlueJeans enterprise-grade video experience on Verizon’s high-performance global networks. The platform will be integrated into Verizon’s 5G product roadmap, providing real-time engagement solutions for high growth areas such as telemedicine, distance learning and field service work. The deal will combine the power of BlueJeans’ video platform with Verizon Business’ connectivity networks, platforms and solutions to meet customers’ needs.
Verizon’s chairman & CEO, Hans Vestberg, stated that the company has been looking at BlueJeans for about a year. Verizon’s distribution will enable BlueJeans to better compete with Zoom and others. He reiterated that BlueJeans will be built into Verizon’s 5G network. BlueJeans’ founders and key management team will join Verizon to lead the growth and innovation of the business. The acquiree’s employees will become Verizon’s employees once the deal closes.
Verizon is scheduled to report first-quarter 2020 results on Apr 24, before the opening bell. The stock has lost 5.5% compared with 11.2% decline of the industry in the past six months.
It has a trailing four-quarter positive earnings surprise of 1%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Will BlueJeans Redefine Verizon's Portfolio Amid COVID-19 Woes?
Verizon Communications Inc.’s (VZ - Free Report) Business segment yesterday announced that it has inked an agreement to acquire San Jose, CA-based video conferencing company — BlueJeans Network. Financial terms of the deal were not disclosed by the parties, but according to The Wall Street Journal, which first reported the news, the telecom and media giant is paying less than $500 million. The transaction, subject to customary closing conditions, is expected to close in the second quarter.
Founded in 2009, BlueJeans has almost 15,000 business clients and is one of Zoom Video Communications’ (ZM - Free Report) rivals. The move was made in response to Zoom’s soaring popularity as people are working remotely because of the coronavirus pandemic. But Zoom has been charged with legitimate security concerns, including widespread instances of ‘Zoombombing’, where unwelcomed guests caused disorder in a meeting.
In this context, Zoom updated its iOS app last month to remove code that sent device data to Facebook . Also, the company had to rewrite parts of its privacy policy after it was discovered that users’ personal information could be used to target ads. BlueJeans also witnessed a spike in usage in the past month. Unlike Zoom and Microsoft’s (MSFT - Free Report) Skype video calling service, BlueJeans doesn’t have a free version and is primarily aimed at business users.
BlueJeans currently serves a variety of business segments that range from small organizations to some of the world’s largest multinational brands. The buyout will certainly expand Verizon’s unified communications portfolio and bolster its business group, as the wireless carrier continues to roll out 5G networks nationwide. It combines BlueJeans’ trusted meeting platform with Verizon’s communications as a service business immediately.
Furthermore, customers will benefit from a BlueJeans enterprise-grade video experience on Verizon’s high-performance global networks. The platform will be integrated into Verizon’s 5G product roadmap, providing real-time engagement solutions for high growth areas such as telemedicine, distance learning and field service work. The deal will combine the power of BlueJeans’ video platform with Verizon Business’ connectivity networks, platforms and solutions to meet customers’ needs.
Verizon’s chairman & CEO, Hans Vestberg, stated that the company has been looking at BlueJeans for about a year. Verizon’s distribution will enable BlueJeans to better compete with Zoom and others. He reiterated that BlueJeans will be built into Verizon’s 5G network. BlueJeans’ founders and key management team will join Verizon to lead the growth and innovation of the business. The acquiree’s employees will become Verizon’s employees once the deal closes.
Verizon is scheduled to report first-quarter 2020 results on Apr 24, before the opening bell. The stock has lost 5.5% compared with 11.2% decline of the industry in the past six months.
It has a trailing four-quarter positive earnings surprise of 1%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
Verizon currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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