Five9 Inc shareholders voted down the call center software firm's $14.7 billion sale to Zoom Video Communications Inc on Thursday, a major blow to Zoom's plan to expand its offerings following its pandemic boom.
The termination of what would have been Zoom's biggest-ever acquisition comes after proxy advisory firm Institutional Shareholder Services (ISS) and Glass Lewis earlier this month recommended that Five9 shareholders vote against the deal, citing growth concerns and dual-class shares. read more
Under the deal terms announced in July, Five9 shareholders would have received 0.5533 Zoom shares for every Five9 share. The terms implied a 12.8% premium over Five9's market price and valued the company at $14.7 billion.
Since then, Zoom's stock has dropped over 25% as the virtual conferencing giant reported slower growth on its second-quarter earnings call.
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