Zoom was the bidder rebuffed by Five9 -source (updated)

Five9

06/12/2023 18:58

(Recasts paragraph 1, adds details throughout from source)
    By Anirban Sen
       NEW YORK, Dec 6 (Reuters) - 
    Zoom Video Communications  ZM.O  was the bidder that was
rebuffed by call center software firm Five9  FIVN.O , according
to a person familiar with the matter. 
  
        On Tuesday, Five9 said it had been approached with a
takeover offer, without naming the bidder, and said it had
decided not to pursue a transaction. 
  
        The source, who requested anonymity because the
discussions are confidential, said the unnamed party rebuffed by
Five9 was Zoom. 
  
        Both Five9 and Zoom did not immediately respond to
requests for comment on Wednesday.
  
        The recent approach from Zoom came about two years after
shareholders voted against its proposed $15-billion-buyout of
Five9. 
  
        Five9's shares, which rose as much as 16% on Monday,
were trading at $81.5 on Wednesday, having erased all the
earlier gains. Zoom's shares were trading at $70.65, giving the
company a valuation of $21.5 billion. 
  
        Zoom's market value peaked in October 2020, as it became
the poster child of the pandemic era after its video
conferencing service was widely adopted in businesses and
schools across the world. 
  
        However, as the world emerged from the pandemic and
people started returning to offices for in-person meetings,
Zoom's growth stalled. By November 2021, its market
capitalization had fallen about $100 billion from its peak. 
  
        Zoom has sought to overcome the slowdown in the growth
of its video-conferencing platform by offering a broader range
of software tools, especially business collaboration software,
to large corporations. Some of those efforts are starting to pay
off; - after reporting revenue growth during the June quarter,
Zoom forecast third-quarter profit above analysts' expectations.
  
        Five9, whose call center software is used by more than
2,000 clients across the globe, counts companies like Alaska
Airlines  ALK.N  and Wyndham Hotels & Resorts  WH.N  among its
customers.
  

 (Additional reporting by Arsheeya Bajwa in Bengaluru; Editing
by Shailesh Kuber and Leslie Adler)
 ((ArsheeyaSingh.Bajwa@thomsonreuters.com; +91 8510015800;))