Zoom won’t buy Five9 after all
Five9 will remain independent — its deal to be acquired by Zoom is off. Though a press release from Five9 says it was “terminated by mutual agreement,” it’s also the case that Five9 shareholders rejected the $14.7 billion deal.
Zoom originally announced the acquisition on July 18th. Five9 automates managing customer contacts for businesses, and the deal was supposed to bolster Zoom’s business offerings. Its major competitors are behemoths like Microsoft and Google, and the deal would have helped the smaller company expand.
This was supposed to be an all-stock transaction, but unfortunately for Zoom, its stock price has lost more than a quarter of its value since they announced the acquisition. Usually, when a company is bought, shareholders receive a premium over their stock price; because this was an all-stock deal, however, Zoom would be picking up Five9 at a discount.
Earlier this month, Institutional Shareholder Services, an independent proxy advisor, recommended shareholders vote against the deal. The government also had a thing or two to say about possible national security risks, which probably didn’t help matters.
In a blog post published Thursday, Zoom CEO Eric Yuan says the failed acquisition won’t significantly affect Zoom’s plans. Five9 “was in no way foundational to the success of our platform nor was it the only way for us to offer our customers a compelling contact center solution,” he said. Zoom plans to keep its “long-standing partnerships” with Five9 and other companies that offer similar services.
Five9 will remain independent — its deal to be acquired by Zoom is off. Though a press release from Five9 says it was “terminated by mutual agreement,” it’s also the case that Five9 shareholders rejected the $14.7 billion deal. Zoom originally announced the acquisition on July 18th. Five9 automates managing…
Recent Posts
- LG’s new super-bright OLED panel could give the next Meta Quest an edge over the Apple Vision Pro
- PPSSPP brings PSP emulation to the iPhone
- A new Bruce Springsteen documentary coming to Hulu and Disney Plus will take us on the road with the E Street Band
- Senate committee passes three bills to safeguard elections from AI, months before Election Day
- Firefox 126 is out – and it’ll make a huge difference to the quality of videos in the browser, for those with the right hardware
Archives
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- December 2011