The pandemic has shifted focus from working on-ground to a work from home mindset. In accordance, online platforms like Zoom have met with immense success in setting up a far-reaching communication network for schools, colleges, and offices. Zoom has academic and professional applications and also helps friends and families to stay in touch and socially interact in these trying times.
The video communication company had been planning a partnership with Five9 since July of this year. Zoom’s partnership with Five9 would have enabled the communication giant to improve its services for users. According to Eric Yuan, the CEO of Zoom, Five9 would improve the contact center for customers and users. Zoom tried to improve its customer contact solution capabilities in an attempt to stay afloat in the competition against several rival companies.
However, recently, Five9 decided against closing the billion-dollar deal with Zoom. Key shareholders of the Five9 company ultimately decided against the partnership. A majority of the shareholders voted against the deal, terminating a 14.7 or nearly 15-billion-dollar deal. If the deal had gone through, shareholders of Five9 would have received up to 0.5533 shares of Zoom for every share in Five9.
Due to the termination of this deal, Zoom has been subject to a 25% decline in its stock value. As the world moves toward a post-pandemic functioning, the Zoom application’s need and consequent growth would be affected. A report by Institutional Shareholder Services Inc. explains that this eventuality is what would be a risky factor for shareholders of Five9.
Eric Yuan, Zoom CEO, stated that Five9’s support and service were not the basis for the functionality and success of the video communication system. Zoom plans to launch an integrated Engagement Centre which will act as a center for contact solutions by the beginning of 2022.