After announcing in July that a $14.7 billion deal will be closed with Zoom, Five9 revealed that they left the offer. This could have been Zoom’s first billion-dollar purchase and the second-biggest tech deal of the year but lost the opportunity to expand its capabilities after it rallied during the COVID-19 pandemic.
According to the letter sent to the Federal Communications Commission, a branch of the Justice Department was worried about foreign participation. However, Zoom expected the agreement to be closed in the first half of 2022.
Five9 shareholders were ultimately unsatisfied with the small premium Zoom was supposed to pay. They were set to receive a 13% bump in the value of their shares over the trading price reported before the agreement.
Zoom and Five9 said they would maintain support for the integrations, honoring their product partnership before the acquisition agreement.
After declining 28% after the announcement, Zoom stock price added 3.82%.
Sources: cnbc.com, investors.com