Zoom, Five 9 call off mega-merger deal after shareholder vote
Zoom and cloud center software company Five9 called off their mega-merger, after Five9 shareholders rejected what had originally been a $14.7 billion agreement. Regulators had questioned the deal on national security grounds.
Why it matters: Zoom had hoped to use the all-stock deal to accelerate its entry into the contact center software business. It still plans to go after that market, both through partnerships and its own software due out next year.
Between the lines: There had also been concerns over the deal's price tag.
- "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,” Zoom CEO Eric S. Yuan said in a statement.
Editor's note: The headline was updated to reflect that the deal was called off by both companies.