Verizon will buy video conferencing company BlueJeans
1) Verizon is buying the video conferencing platform BlueJeans as workers increasingly rely on web tools to connect during the coronavirus pandemic, the company announced Thursday.
2) The acquisition comes as many enterprise tools like Zoom, Slack and Microsoft Teams have seen an uptick in usage as more American regions have been instructed to stay at home to tamp down the spread of the virus.
3) In an interview with CNBC, Verizon CEO Hans Vestberg said he sees an opportunity to compete with existing video conferencing companies in Verizon’s distribution platform and integration with its 5G network.
Verizonis buying the video conferencing platform BlueJeans as workers increasingly rely on web tools to connect during the coronavirus pandemic, the company announced Thursday.
Verizon will pay about $400 million in the deal, CNBC’s David Faber reported. BlueJeans has more than 15,000 customers, Verizon CEO Hans Vestberg said in an interview with Faber shortly after the deal was announced.
Many enterprise tools likeZoom,SlackandMicrosoftTeams have seen an uptick in usage as more American regions have been instructed to stay at home to tamp down the spread of the virus. The acquisition shows Verizon is looking to be a part of that movement as businesses still struggle to reopen offices.
“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 a statement.
“We see an opportunity with our distribution channel,” Vestberg said of competing with companies like Zoom. He added that BlueJeans will be built into the company’s 5G offering.
Including the conferencing tool in its 5G network could help Verizon compete with other carriers, including the newly combinedT-Mobileand Sprint. Ajudge ruled in Februarythat the acquisition could go through after a group of states challenged the merger as anticompetitive, whittling down the number of major American telecommunications companies from four to three. The companies argued their combination would help them advance plans to build out 5G networks.
“We feel really good about our assets,” Vestberg told CNBC. “I feel that we are in a very very good spot with 5G.”
According to its website, BlueJeans countsFacebook, LinkedIn andIBM-owned RedHat among its customers.
The Funds' investment objectives, risks, charges, and expenses must be considered carefully before investing. The QTUM,FIVG, and IBBJprospectuses contain this and other important information about the investment company. Please read it carefully before investing. A hard copy of the prospectus can be requested by calling 833.333.9383.
Investing involves risk. Principal loss is possible. As an ETF, the funds may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. The Funds are not actively managed and would not sell a security due to current or projected under performance unless that security is removed from the Index or is required upon a reconstitution of the Index. A portfolio concentrated in a single industry or country, may be subject to a higher degree of risk. The value of stocks of information technology companies are particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation and competition. The Funds are considered to be non-diversified, so they may invest more of its assets in the securities of a single issuer or a smaller number of issuers. Investments in foreign securities involve certain risks including risk of loss due to foreign currency fluctuations or to political or economic instability. This risk is magnified in emerging markets. Small and mid-cap companies are subject to greater and more unpredictable price changes than securities of large-cap companies.
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Performance current to the most recent month-end can be obtained by calling (833.333.9383). Click here for funds performance: QTUM, FIVG, and IBBJ.
The securities of small-capitalization companies may be more vulnerable to adverse issuer, market, political, or economic developments than securities of large- or mid-capitalization companies. The success of biotechnology companies is highly dependent on the development, procurement and/or marketing of drugs. The values of biotechnology companies are also dependent on the development, protection and exploitation of intellectual property rights and other proprietary information, and the profitability of biotechnology companies may be affected significantly by such things as the expiration of patents or the loss of, or the inability to enforce, intellectual property rights. The research and development and other costs associated with developing or procuring new drugs, products or technologies and the related intellectual property rights can be significant, and the results of such research and expenditures are unpredictable and may not necessarily lead to commercially successful products.
The possible applications of quantum computing and 5G technologies are only in the exploration stages, and the possible returns are uncertain and may not be realized in the near future.
Opinions expressed are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice.
FANG stocks is the acronym for Facebook, Amazon, Netflix and Google (now Alphabet, Inc.).
Dow Jones Industrial Average (DIJ) is a stock market index that shows how 30 large, publicly owned companies based in the United States have traded during a standard trading session in the stock market.
Alpha is a measure of the active return on an investment compared with a suitable market index.
References to other funds should not be considered an offer to buy or sell these securities.
The Defiance Next Gen Connectivity ETF is the first ETF to emphasize securities whose products and services are predominantly tied to the development of 5G networking and communication technologies. The fund does this by tracking The BlueStar 5G Communications Index. The Fund attempts to invest all, or substantially all, of its assets in the component securities that make up the Index.
Diversification does not ensure a profit nor protect against loss in a declining market.
It is not possible to invest directly in an index.
Commissions may be charged on trades.
The Defiance ETFs are distributed by Foreside Fund Services, LLC.