Five9 shareholders refuse to merge with Zoom

Despite the $ 15 billion offered, shareholders of cloud software company Five9 opposed a business merger with Zoom Video Communications Inc., which owns video conferencing software.

As stated by representatives of Five9, the deal did not receive the required number of shareholders’ votes, so the prospective participants in the transaction abandoned it by mutual agreement. Most likely, the deal was not canceled on the initiative of Zoom. According to the company’s chief executive officer Eric Yuan, Zoom was looking forward to a partnership with Five9. At the same time, he stressed that the company will continue to focus on increasing value for shareholders and customers of the business.

Not so long ago, the Zoom app became the main driver of success in the massive global shift of employees of many companies to remote work during the most acute period of the pandemic. The company went public only in 2019, but just recently its market value has more than tripled. Today the company is worth over $ 80 billion.

A potential deal with Five9, announced this summer, could be the largest merger in its short history. After that, the company hoped to gain access to the market of contact centers, estimated at tens of billions of dollars.

The American authorities intervened. Last week, Team Telecom, which includes representatives from several ministries and departments, began evaluating a possible merger. According to the letter from the US Department of Justice, the group had to make sure that the deal “Poses no risk to national security or law enforcement interests”

It is not yet known what role the American authorities played in disrupting the deal – previously, Zoom was often accused of having links with the Chinese authorities.


About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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