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Zoom Video Communications’ plans to purchase the Five9 cloud software have crashed just weeks after U.S. Department of Justice raised national security concerns over a $ 14.7bn deal and shareholders were advised to vote against what they take with the powerful party.
The companies announced on Thursday that they had decided to end their deal following a Five9-day stock deal, with many economists saying they were opposed to the deal.
“We have had the opportunity to be in close contact with our partners since the announcement of the business. We are very grateful to respond and trust Five9’s future prospects and share their views on potential for profit as an independent company,” said Rowan Trollope, CEO of Five9.
The idea to end the reception is to hurt the Zoom, which hopes to expand its offerings following the huge success of its video conferences during the epidemic. Dealing with the Five9 would have been the biggest purchase so far, but it has been hampered by the complex share price and legal challenges.
Earlier this month the DoJ also said that Zoom’s connection with China should be reviewed before any agreement can be approved.
The expansion takes a large part of China’s manufacturers, which the US has long complained about, fearing it could jeopardize the security of telecommunications companies.
A company based in San Jose, California has repeatedly said that no customer information flows through Chinese servers, although it acknowledged that last year it had run some phones in China incorrectly.
Zoom CEO Eric Yuan wrote in a blog post that Five9 “provided the best way to bring our customers the most connected connections”, but “it was not the foundation for our success and was not the only way to provide our customers with a better way to connect”.
All sales announced in July originally owned a share of five shares at $ 200.28 each and depositors to receive 0.5533 shares of Zoom class A common stock. However, the price of shares in Zoom has now dropped by 26% for fear that the popularity of its video conference will disappear as employees return to the office.
The accredited Institutional Shareholder Services earlier this month raised concerns about Zoom’s growth and advised five shareholders to vote against the agreement.
In another demonstration, Five9 said it would hold an accounting day on November 18 to discuss his thoughts and feelings.
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