Zoom’s Anthropic investment could be worth $2 billion to $4 billion: Baird
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shares zoom in It closed up 11% on Monday after analysts at Baird estimated the company’s investment in artificial intelligence startup Anthropic could be worth between $2 billion and $4 billion, depending on dilution assumptions.
Anthropic in May 2023 announced It has partnered with Zoom and revealed that Zoom Ventures has invested in the company. The companies did not disclose the value of the investment, but Zoom reported making $51 million from “strategic investments” in the quarter, according to a filing with the U.S. Securities and Exchange Commission.
Baird’s analysts estimate that all, or at least the “vast majority,” of that investment went to Anthropic. Analysts said the startup is currently valued at $350 billion, suggesting Zoom could see a return of around 78 times its investment.
“While we (and the market) are primarily focused on ZM’s ability to gradually re-accelerate revenue growth and seize AI opportunities, the quieter, hidden gem may be its $51 million investment in Anthropic in 2023,” analysts wrote in a note on Monday. he wrote.
Zoom gained popularity at the beginning of the Covid-19 pandemic as workers turned to the video conferencing platform to stay in touch with colleagues, friends and family. But as the pandemic subsided and many workers returned to in-person tasks, Zoom’s shares have fallen from their highs.
Baird’s analysts said the company’s investment in Anthropic could be a bright spot.
“ZM is fully invested in Anthropic’s Claude success, and as Anthropic IPO rumors gain momentum, the investment could become even more meaningful,” analysts wrote.
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