Atlassian Acquires Loom to Boost Team Collaboration Suite

In May 2021 Loom raised a $130 million Series C at a $1.5 billion valuation, positioning itself as a unicorn in the video‑messaging space. By mid‑2022 the startup had laid off 14% of its staff as venture‑capital funding slowed and remote‑work demand cooled.

Atlassian’s co‑CEO Mike Cannon‑Brookes called async video “the next evolution of team collaboration” and agreed to acquire Loom for $975 million – about a 35% discount to its 2021 peak. The deal, expected to close in Q1 2027, will add Loom’s async‑video capabilities to Atlassian’s collaboration suite, strengthening its product offering and cross‑sell potential.

Atlassian gained Loom’s video messaging technology and user base, enhancing its collaboration tools and positioning for future growth in async communication.

Loom’s async‑video technology aligned with Atlassian’s vision for the future of team collaboration.

The discounted price made the acquisition financially attractive compared with Loom’s earlier unicorn valuation.

Integrating Loom lets Atlassian quickly expand its collaboration portfolio and cross‑sell to its existing customer base.

The move counters slowing VC activity and a return to office work by adding a sticky, high‑engagement tool to the suite.

Strategic acquisitions can fill product gaps quickly when market conditions create favorable pricing, even if the target’s prior peak valuation has declined.

The acquisition is slated to close in the first quarter of 2027. Once integrated, Loom’s video messaging will become part of Atlassian’s collaboration stack, potentially boosting user engagement and creating new upsell opportunities across its Jira, Confluence and Trello products.