As the Nasdaq Drops, Could Five9 Escape Its Deal with Zoom?

The stock market looked poised to close the week on a down note today. Even the Nasdaq Composite (NASDAQINDEX: ^IXIC), which has been an outperformer lately, found itself down three-quarters of a percent as of 12:30 p.m. EDT on Friday.

Most investors are excited when a company whose shares they own gets an offer to get taken over. Such buyout bids usually come with a nice premium to where the stock traded immediately prior to the news, and that can mean a quick payday for shareholders.

However, an acquisition bid also means that the fortunes of the target are tied to those of the buyer, and sometimes that doesn't lead to the best results for investors. That's something that shareholders in Five9 (NASDAQ: FIVN) are learning the hard way, and now, it looks increasingly possible that its deal with video collaboration giant Zoom Video Communications (NASDAQ: ZM) might well not go through.

Source Fool.com