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Zoom’s nearly $15 billion acquisition of call center software company Five9 fell through on Thursday evening when the companies said they would terminate a deal that drew national security scrutiny.
Five9 said in a press release that the deal did not receive enough support from its shareholders and the company will continue to operate independently. Five9 spokesperson Allison Wilson said she believes the company will build on “existing proven momentum” as an independent firm.
Eric S. Yuan, CEO of Zoom, said in a blog postWhile the acquisition was an opportunity for the company to grow, it “in no way laid the foundation for the success of our platform.” Zoom spokesperson CJ Lin said the company had no further comment.
The proposed deal, between both California-based companies, had drawn scrutiny from the government. Ministry of Justice in August pressed for a federal review To determine whether the deal “creates a risk to the national security or law enforcement interests of the United States,” according to a letter sent to the Federal Communications Commission. The agency said it was concerned about the possibility of “foreign involvement” in the transaction.
In December, a Zoom executive was accused and accused of working with the Chinese government to disrupt online events held for the anniversary of the Tiananmen Square massacre.
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