Zoom Video Communications Inc. and Five9 Inc. scrapped their $14.7 billion merger agreement after a steep decline in Zoom’s shares slashed the deal’s value by almost a third, leading Five9 shareholders to reject the offer.
Zoom sought to buy Five9, a call-center software provider, to bolster its popular videoconferencing app in the face of stiffening competition. Five9 investors were offered 0.5533 shares of Zoom for each Five9 share, valuing the deal at $14.7 billion based on Zoom’s July 16 closing price of $361.97. Since then, Zoom’s stock has dropped 28%, ending Thursday at $261.50.
The deal “has been terminated ...
