Shareholders of the cloud-based contact center Five9 rejected the all-stock deal, which Zoom had hoped would allow it to broaden its reach beyond video. Credit: KrulUA / Simon Carter / Peter Crowther / Getty Images Zoom’s $14.7 billion bid to acquire Five9, announced on July 18, has been rejected by cloud-contact center company’s shareholders. In a statement yesterday, Five9 said the deal was “terminated by mutual agreement,” and since the deal “did not receive the requisite number of votes to approve the merger” Five9 will continue to operate as a standalone company. Zoom CEO Eric Yuan said in a statement that while the company had looked forward to the potential partnership, “financial discipline is foundational to our strategy.” He said Zoom will continue to look for ways to boost value for shareholders and customers. Given the volatility in the collaboration market right now, it’s not a surprise the deal fell through, said Steve Blood, a VP analyst at Gartner. He also noted that the collaboration and contact center markets are very different. “Five9 is laser focused on customer experience – there was a risk the acquisition would disrupt that,” Blood said. The planned acquisition had highlighted Zoom’s ambitions for continued growth outside of its traditional area of expertise — enterprise videoconferencing. The failure could also pose a blow to the launch of the cloud-based video contact center Zoom announced at its 2021 Zoomtopia conference earlier this month. In her keynote speech at Zoomtopia, Heidi Elmore, head of UCaaS at Zoom, said that adding video to a contact center would allow agents to “connect with empathy” and build rapport and trust with customers. Blood, however, argued that while there may be a few use cases for video in customer services, there isn’t huge demand for this in cloud-contact center customer base. “Even if there is, digital customer service providers are adding real time video using WebRTC,” he added. And, Blood said, Zoom’s video technology is designed for multiple participants, which doesn’t line up well with the one-to-one relationship in customer services. “The primary initiative from our clients right now is to move assisted service customer engagements to self-service. Adding video assisted service engagements is very low on the priority list,” he said. Yuan said the failed acquisition shouldn’t affect Zoom’s overall plans, saying Five9 “was in no way foundational to the success of our platform, nor was it the only way for us to offer our customers a compelling contact center solution.” As for Five9, Blood believes the company will continue to thrive without Zoom, pointing to the fact that its year-over-year growth is exceeding the overall 32% level of growth shown by the cloud-based contact center sector. “There is so much continued growth opportunity for CCaaS players that remain laser focused on meeting the customer experience needs of their customers and prospects,” Blood said. “We believe it will be far easier to do this without getting distracted by the volatility of the unified communications and collaboration market.” Related content feature Windows 11 Insider Previews: What’s in the latest build? Get the latest info on new preview builds of Windows 11 as they roll out to Windows Insiders. Now updated for 22635.3500 for the Beta Channel and Build 26200 for the Canary Channel, both released on April 19, 2024. By Preston Gralla Apr 19, 2024 250 mins Small and Medium Business Microsoft Windows 11 news analysis Chasing business and partnerships, Apple goes APAC Apple CEO Tim Cook’s week-long visit to Indonesia, Vietnam, and Singapore highlights how the company continues to explore new opportunities in global markets. By Jonny Evans Apr 19, 2024 4 mins Manufacturing Industry Apple Vendors and Providers news Microsoft reminder: Support for Office 2016 and 2019 ends next year Older versions of Office apps and servers will no longer get security updates as of October 2025 — when Windows 10 also reaches end of support. By Matthew Finnegan Apr 19, 2024 3 mins Microsoft Office Microsoft Office Suites news Google consolidates AI teams into DeepMind to scale capacity The restructuring will simplify development by concentrating compute-intensive model building in one place and establishing single access points for PAs looking to take these models and build generative AI applications, Google said. By Gyana Swain Apr 19, 2024 4 mins Google Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe