Zoom Hiked after it Ceased $14.70B Merger Deal with Five9

On Friday, Zoom Video Communications Inc. moved higher after agreeing with Five9 to abort their $14.70 billion merger deal. 

The video software company climbed 1.59% or 4.09 points to $261.50 per share. 

Additionally, it reversed its previous decline of 1.71% to $257.41 per share.

Zoom is a worldwide provider of teleconference and online chat services platforms. 

The firm went public two years ago and has been a household name since the pandemic.

Currently, the California-based enterprise holds a market capitalization of $77.81 billion and a revenue of $2.70 billion.

The willful decision of the two companies is highly unusual amid the slew of tech acquisitions nixed by the regulators. 

Accordingly, Five9 did not obtain enough shareholders’ support for the said negotiation, as they were unsatisfied with Zoom’s small premium offer. 

In the accord, the cloud contact center company would only gain a 13.00% bump in the value of their shares.

This contrasts with the given positive move of the call center business, leading to a higher premium offer expectation from the stockholders. 

Consequently, Five9 Inc. shares declined 1.23% or 1.99 points to $159.74 per share, following its straight plunge this week.

Meanwhile, Microsoft’s purchase of Nuance Communications is one of the noteworthy tech acquisitions this year. 

The tech giant spent $19.70 billion, which amounted to a 30.00% premium. 

Also, Microsoft.com declined 0.73% or 2.08 points to $281.92 per share today.

Another billion-dollar tech move is the addition of Australia’s Afterpay to Square Inc. for  $29.00 billion, corresponding to a 30.00% premium. 

Subsequently, fintech firm Square rose 1.61% or 3.80 points to $239.84 per share.

Nasdaq Index Extended its Drop as Zoom Hiked

Furthermore, the Nasdaq index extended its drop this week as Zoom Video Communications soared.

The benchmark Nasdaq Composite fell 0.44% or 63.86 points to $14,448.58 per share. 

Likewise, the Dow Jones Industrial Average index lowered 1.59% or 546.80 points to $33,843.92 per share. 

At the same time, the S&P 500 index edged down 1.19% or 51.92 points to $4,307.54 per share. 

Consequently, rival software companies of zoom also fell in the market. 

For instance, Cisco Systems Inc., the parent firm of Webex, plunged 1.86% or 1.03 points to $54.45 per share. 

Similarly, Alphabet Inc., which offers Google Meet, lost 0.50% or 13.55 points to $2,673.52 per share. 

Then, Verizon Communications tumbled 0.68% or 0.37 points to $54.01 per share.