Shareholders of call center software group Five9 (FIVN) said no deal to Zoom’s (ZM) $14.7b takeover bid. The acquisition would have been Zoom’s largest deal to date and given it a chance to diversify into the call center business, which has been and remains a strategic priority for it.
So why did the deal fall through? The all-stock acquisition deal had lost more than a quarter of its value in the eyes of Five9 from when it was proposed back in July. Since then, shares of Zoom have fallen from around $200 to less than $145. Additionally, US regulators were looking at the deal under a microscope due to concerns over foreign participation.
why it matters
A successful takeover of Five9 could’ve slowed down Zoom’s summer selloff that’s been driven by concerns around the future of Zoom once workers and students begin returning to their offices and schools. Nevertheless, shares of ZM rose slightly last Friday after news of the rejected deal broke.