What's Next for Zoom and Five9 After Their Failed Merger?
The video communications specialist Zoom Video Communications (NASDAQ: ZM) and the cloud contact center vendor Five9 (NASDAQ: FIVN) announced last week that they were terminating their merger agreement after Five9's shareholders voted against the deal. That's likely because Zoom's share price has been dropping since the end of August. The drop followed disappointing guidance communicated with fiscal second-quarter results, and the news made the all-stock transaction less attractive for Five9's shareholders.
From an operational perspective, the merger made sense. Five9's solutions complement Zoom's video platform with tools that manage enterprise communications with their customers. And Zoom's large footprint would have allowed Five9 to reach a broader audience.
Now the deal is over; let's see what's next for both companies.
Source Fool.com
