Zoom's mega takeover deal of Five9 facing federal examination

Zoom's efforts to expand beyond video conferencing software could now be in jeopardy as a US government committee is currently reviewing the company's proposed Five9 acquisition.

Back in July of this year, Zoom announced its plans to purchase the cloud-powered call center software provider Five9 for approximately $14.7bn.

While the company's business saw a huge surge during the pandemic with more employees working from home than ever before, organizations are now implementing hybrid work policies and asking their employees to return to the office.

By acquiring Five9 though, Zoom will be able to diversify its business and remain profitable even if organizations begin using video conferencing software less than they did during the pandemic.

Team Telecom

According to a new report from the Wall Street Journal, the FCC asked the Committee for the Assessment of Foreign Participation in the United States Telecommunications Service Sector to review Zoom's acquisition of Five 9 in a letter dated August 27.

The reason for the review is due to the fact that Five9 is a Russian-owned company and the Justice Department's David Plotinsky provided further details in his letter to the FCC, saying:

“USDOJ believes that such risk may be raised by the foreign participation (including the foreign relationships and ownership) associated with the application, and a review by the Committee is necessary to assess and make an appropriate recommendation as to how the Commission should adjudicate this application.”

The committee responsible for sending the letter, which was formerly known as Team Telecom, was formalized last year through an executive order signed by former President Trump. It provides advice to the FCC regarding potential threats to telecommunications networks and is separate from the Committee on Foreign Investment in the United States (CFIUS).

Despite this new review, Zoom still believes that its Five9 acquisition will close during the first half of next year as it has “made filings with the various applicable regulatory agencies” according to a company spokesperson who spoke with CNBC via email.

Via CNBC

How It works

Search Crack for

Latest IT News

Oct 22
Microsoft Teams users can now further secure their one-to-one calls by enabling end-to-end encryption.
Oct 22
Silence notifications from work or personal apps thanks to Google Workspace.
Oct 22
Update allows Google Meet hosts to turn off video or mics of individual users.
Oct 22
Shopify's new Spotify channel allows artists to sell their merch to fans directly from their profiles on the music streaming service.
Oct 21
Instagram app might soon include the option to open Facebook directly from within its app.
Oct 21
Intel says new machine learning-powered tool has already helped improve several open source and proprietary software.
Oct 21
Update to Google Workspace lets you block off calendar time to focus.

Latest cracks