$14.7 Billion Acquisition Deal is Off the Table between Zoom and Five9

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It is now official that the deal that had been going on between Zoom and Five9 is no longer on the table. The reports confirm that the online video conferencing and the cloud contact center software company have both proceeded with terminating their acquisition deal.

The official announcement of the acquisition deal termination was made on Thursday, September 30, 2021. It has been reported that the deal did not turn fruitful due to the interference of the shareholders at Five9. According to the agreement, Zoom was to acquire Five9 for an extremely large price.

However, the shareholders at Five9 were against the company’s decision and did not want it to be taken over by Zoom. The pressure from the shareholders was enough to compel Five9 from turning down the offer from Zoom. As a result, the agreement between the companies has been terminated.

It was back in July of 2021 when Zoom executives had announced that they were in the process of acquiring Five9. At that time, it was reported that Zoom was aiming to acquire Five9 purchasing all the stocks of the software company. The executives at Zoom had confirmed that they had made an offer of $14.7 billion to Five9 decision-makers for the acquisition.

If the deal had been finalized and concluded, it would have been the first time in the history of Zoom to have carried out a deal worth several billion.

Throughout the pandemic period, Zoom accumulated a large valuation due to worldwide usage. The company continued growing throughout the pandemic period starting from March of 2020. However, as the pandemic is now dying down and things are getting back to normal, Zoom has started losing its market worth.

Therefore, the company was aiming to increase its service portfolio and was aiming to diversify its revenues. However, the deal was unsuccessful between the two, thanks to the shareholders at Five9. If the deal had been finalized, the company would have increased its capabilities of generating profits and revenues.

Right after the announcement, the share prices for Five9 experienced a drop. The data shows that since the announcement on Thursday, September 30, 2021, the share prices for the company have experienced a 2% drop.

The founder and CEO of Zoom, Eric Yuan talked about the reason why they were eager to bring Five9 under their flagship. Yuan stated that they were planning to diversify the experience of their customers when they used their services. Therefore, they saw that buying Five9 would offer exactly what they were aiming to acquire and offer their customers.

They were aiming to integrated and provide a contact center offering to their customers. This is where they saw a lot of potential and benefit in acquiring the software company.