Zoom and Five9 Ditch $14.7 Billion Acquisition Deal
Posted on 09/30/2021
Zoom Video Communications Inc. and Cloud contact center software company Five9 Inc. decided not to go forward with the deal. Zoom planned to buy Five9 for US$ 14.7 billion. The U.S. Department of Justice (DOJ) was reviewing the deal out of concern of potential foreign participation. The DOJ is concerned about potential national-security risks posed by Zoom with its ties to China. Zoom announced the intent to buy Five9 in July 2021. Zoom is an online meeting platform, which has surged in popularity as the COVID-19 pandemic.
Zoom Video Communications says it has many research and development personnel in China.
The Zoom-Five9 agreement did not receive the requisite number of votes from Five9 shareholders to approve the merger with Zoom. Five9 will continue to operate as a standalone publicly traded company.
