Zoom's almost $15 billion bid to purchase Five9, a contact center services provider, was nixed after the two companies failed to get enough votes for the deal from their shareholders, The Wall Street Journal reported Oct. 1.
The merger plan had been "terminated by mutual agreement" between the two companies, Five9 said in a Sept. 30 news release. Five9 will continue its current relationship with Zoom, which includes contact center services.
U.S. regulators also scrutinized the deal, citing national security concerns. In September, the Journal reported that the Justice Department was investigating the planned merger over Zoom's ties with China.
By trying to acquire Five9, Zoom was attempting to break into the cloud-based contact center software market, which helps businesses stay in touch with their customers. Since the start of the COVID-19 pandemic, Zoom has seen big benefits from the shift to remote work, telehealth and virtual schooling. In August, Zoom's sales guidance came in lower than expected, as small businesses and consumers are expected to spend less on the video conferencing platform, according to the report.