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Vonage Acquires TokBox For WebRTC Video Tech


  • Vonage has announced the acquisition of TokBox for $35 million cash.
  • TokBox has developed easy-to-implement video integration technologies for websites.
  • The deal promises to be an opportunistic win for Vonage if it can cross-sell the new tech and add value for investors over the medium term.
  • This idea was first discussed with members of my private investing community, IPO Edge. To get an exclusive 'first look' at my best ideas, start your free trial today >>

Quick Take

Vonage (VG) has announced it has acquired TokBox from Telefonica for $35 million.

TokBox has developed the OpenTok platform which allows companies to add live video, interactive broadcast, and video chats directly to their websites and mobile apps.

VG management is showing their ability to opportunistically acquire video communications technologies; the deal is promising in the medium-term as Vonage integrates and sells the new capabilities to its customer and prospect bases.

Target Company

San Francisco, California-based video conferencing company TokBox was founded in 2007 to build a platform to let users add group video chat features to their websites and official apps.

Management is headed by CEO Scott Lomond, who has been with the firm since 2013 and was previously VP and GM of LifeSize Cloud Services at LifeSize, a division of Logitech.

Below is an overview video of The TokBox Interactive Broadcast Solution:

(Source: TokBox)

TokBox’s primary offering, the OpenTok Platform, includes:

  • Live Video API
  • Interactive Broadcast API
  • Video Chat Embeds
  • Insights

The OpenTok platform is compatible with iOS, Android, Windows, and web browsers, such as Chrome, Firefox, Safari, and Internet Explorer 10 and 11. Users can customize their video chat experience to their needs, from one-to-one video calls to large-scale video conferences.

Investors have invested $26 million in the company and include Sequoia Capital, SV Angel, Bain Capital Ventures, DAG Ventures, Amidzad Partners, Jawed Karim, Rajeev Motwani, and Tony Bates. (Source: Crunchbase)

Market & Competition

According to IDC, the real-time communications [RTC] market is expected to grow to $7.4 billion by 2022, at a tremendous CAGR of 140% during the four-year period.

The main drivers for this expected growth are the adoption of WebRTC, the leading standard of video-capable devices, and the decrease in cost and complexity in software.

Major competitive vendors that provide RTC

This article was written by

Donovan Jones profile picture

I'm the founder of IPO Edge on Seeking Alpha, a research service for investors interested in IPOs on US markets. Subscribers receive access to my proprietary research, valuation, data, commentary, opinions, and chat on U.S. IPOs. Join now to get an insider's 'edge' on new issues coming to market, both before and after the IPO. Start with a 14-day Free Trial.

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Comments (3)

dcxavier profile picture
It also enlarges their Bay Area engineering staff. Let's see what they come up with.
Long VG. Continues expanding after its Lazarus-like return from a over a decade ago.
Thx, looks interesting; no pos.
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