Zoom-Five9 Deal Falls Apart: Here's What Happened

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Zoom’s  (ZM ) - Get Zoom Video Communications (ZM) Report$14.7 billion deal takeover bid of Five9 (FIVN) - Get Five9 Inc. Report fell apart on Thursday. Shareholders of call center software group Five9 rejected the offer in a special meeting.

“While we were excited about the benefits this transaction would bring to both Zoom and Five9 stakeholders, including the long-term potential for both sets of shareholders, financial discipline is foundational to our strategy,” said Zoom CEO Eric S. Yuan. “The contact center market remains a strategic priority for Zoom, and we are confident in our ability to capture its growth potential."

TheStreet’s Martin Baccardax reported that the ongoing slide in Zoom’s shares price made the all-stock deal “less attractive” to Five9.

Related: Zoom Video Stock Gains After Five9 Shareholders Reject $14.7 Billion Takeover

Zoom reached its popularity peak at the start of the pandemic, however, the story is not the same these days.

Related: Watch How Zoom Made This Couple's Wedding Possible Amid Coronavirus Pandemic

Zoom stock has already lost over 20% of its value this year. 

"We remain focused on driving long-term value creation for Zoom shareholders and delivering happiness to our customers through our broad-based communications platform including unified communications, developer, and events solutions,” said Yuan.

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