Zoom to buy Seattle AI startup
Published in Science & Technology News
Zoom, the San Jose, California-based company known for its video conferencing platform, has agreed to purchase a Seattle startup as it tries to position itself as an artificial intelligence-powered workplace.
Four Seattle-area tech workers founded the startup, called Common Room, in 2020. The company offers a sales and marketing platform that uses AI agents to identify sales opportunities.
The company officially launched in 2021 with fewer than 20 employees and $52 million in total funding, according to a GeekWire article at the time. Today, the company has 180 employees, according to its LinkedIn page.
As Common Room emerged, Zoom’s popularity as a video conferencing and webinar platform exploded amid pandemic lockdowns — so much so that members of Generation Z were nicknamed “Zoomers.”
But as companies returned to in-person work, Zoom has tried to evolve with post-pandemic workplace needs. The company began introducing AI generative capabilities, such as meeting summaries, in 2023.
Now, Zoom has a suite of AI-powered products that can analyze sales conversations, supply a company’s customer support operations and provide sales coaching.
The pivot appears to be working. Zoom, worth $25.4 billion, expects to bring in more than $5 billion in revenue for the first time over fiscal year 2027.
Bringing on Common Room will add to Zoom’s product portfolio, filling a gap by deploying AI agents to analyze bundles of data to identify potential buyers.
In Zoom’s news release announcing the acquisition plans last week, the company said businesses are “drowning” in a patchwork of tools that they have to stitch together to find likely customers.
“Revenue teams will now have a single, unified platform that will help them reach the right person at the right moment with the right message at every stage of a deal, cutting busywork and driving better commercial outcomes,” Abhisht Arora, chief strategy officer of Zoom, said in the news release.
Common Room CEO Linda Lian said Zoom’s scale and resources will benefit the startup.
“We built Common Room to give every seller a real understanding of the person and the organization on the other side of the deal,” Lian said in the news release. “Joining Zoom connects our graph to the conversations sellers have every day where deals are actually won and to the AI that can act on it.”
The terms of the deal are not public, but the news release said the transaction is expected to close in the coming weeks.
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