Zoom, Five9 Might Make Another Acquisition Attempt: Report

In 2021, Zoom’s $14.7 billion offer for Five9 was voted down by the latter’s shareholders.

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Zoom and Five9 are reportedly considering another go at an acquisition more than two years after Zoom’s failed $14.7 billion bid.

Zoom, the San Jose, Calif.-based communications tool vendor, has held acquisition discussions with Five9, which is working with advisers, according to a Bloomberg report. Five9, a contact center software vendor based in San Ramon, Calif., will likely attract other potential buyers.

CRN has reached out to Five9 and Zoom for comment.

Zoom Makes Another Five9 Purchase Attempt?

Five9 has about 950 channel partners worldwide and 700 in North America, according to CRN’s 2023 Channel Chiefs.

Zoom did not disclose its number of partners in CRN’s 2023 Channel Chiefs, but it did say 32 percent of overall sales come through the channel. In 2022, the company said it had more than 8,500 partners worldwide.

In October, Zoom’s channel chief, Todd Surdey, told CRN that the vendor wants to lean more heavily on channel partners of various business models.

In 2021, Zoom’s $14.7 billion offer for Five9 was voted down by the latter’s shareholders.

Both vendors reported quarterly earnings in November. Zoom brought in about $1.1 billion during the quarter, up 3.5 percent year over year ignoring foreign exchange. Enterprise revenue was $660.6 million, up 7.5 percent year over year. Operating margin using generally accepted accounting principles (GAAP) was 14.9 percent.

Five9 reported $230.1 million for its third quarter, up 16 percent year over year. GAAP gross margin was 51.7 percent for the quarter. GAAP net loss was $20.4 million, an improvement of about 12 percent over the prior year.

Five9’s stock traded at about $86 a share after hours Monday, up about 8 percent from market close Friday. Zoom’s stock traded at about $68 a share after hours Monday, down about 4 percent from market close Friday.