Zoom’s $14.7B acquisition bid for Five9 falls apart


Zoom’s $14.7 billion bid to acquire Five9, announced on July 18, has been rejected by cloud-contact center company’s shareholders.

In a statement yesterday, Five9 said the deal was “terminated by mutual agreement,” and since the deal “did not receive the requisite number of votes to approve the merger” Five9 will continue to operate as a standalone company.

Zoom CEO Eric Yuan said in a statement that while the company had looked forward to the potential partnership, “financial discipline is foundational to our strategy.” He said Zoom will continue to look for ways to boost value for shareholders and customers.

Given the volatility in the collaboration market right now, it’s not a surprise the deal fell through, said Steve Blood, a VP analyst at Gartner. He also noted that the collaboration and contact center markets are very different.

“Five9 is laser focused on customer experience – there was a risk the acquisition would disrupt that,” Blood said.

The planned acquisition had highlighted Zoom’s ambitions for continued growth outside of its traditional area of expertise — enterprise videoconferencing.

Copyright © 2021 IDG Communications, Inc.



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