Zoom abandons its $14.7 billion acquisition of Five9 plan

US video conferencing software manufacturer Zoom and cloud contract center software manufacturer Five9 announced on Thursday that the two parties have decided to abandon the merger and acquisition transaction valued at $14.7 billion previously reached. Five9 said the transaction failed to get enough votes from shareholders.

For Five9 shareholders, one of the problems may be the lower premium that Zoom pays. At the agreed price, the value of Five9’s stock will only increase by 13% compared to before the agreement. Taking into account the development momentum of cloud software, and investors have been investing a lot of money in Five9’s similar companies, to get the company’s shareholders to agree to this transaction, it may be necessary to significantly increase the premium.

Zoom announced in July this year that it intends to acquire Five9, this is the company’s first attempt to spend more than 1 billion US dollars in mergers and acquisitions.

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