Zoom Stock Plummets After News Of $14.7B Five9 Deal
Zoom’s stock tanked yesterday after the company announced it plans to buy call centre software business Five9 for $USD14.7 billion.
An hour after the Monday morning markets opened, Zoom stock was down 3.9 per cent, at $USD348. Shares had recovered somewhat by close of down, with a drop of 2.15 per cent, trading for $USD354.20.
Conversely, Five9 shares were up 5.9 per cent, trading at $USD188.12.
The $14.7 billion deal overvalues Five9’s shares, at $USD200.
“We are continuously looking for ways to enhance our platform, and the addition of Five9 is a natural fit that will deliver even more happiness and value to our customers,” said Eric S. Yuan, Chief Executive Officer and Founder of Zoom.
“Zoom is built on a core belief that robust and reliable communications technology enables interactions that build greater empathy and trust, and we believe that holds particularly true for customer engagement.
“Enterprises communicate with their customers primarily through the contact centre, and we believe this acquisition creates a leading customer engagement platform that will help redefine how companies of all sizes connect with their customers.
“We are thrilled to join forces with the Five9 team, and I look forward to welcoming them to the Zoom family.”