Five9 and Zoom Deal Hits a Deadend?

The Six Five team explores the Five9 and Zoom deal.

Watch the clip here:

If you are interested in watching the full episode you can check it out here.

Disclaimer: The Six Five Webcast is for information and entertainment purposes only. Over the course of this webcast, we may talk about companies that are publicly traded and we may even reference that fact and their equity share price, but please do not take anything that we say as a recommendation about what you should do with your investment dollars. We are not investment advisors and we do not ask that you treat us as such.

Transcript:

Daniel Newman: Let’s wrap up with a little bit of news. I don’t want to say it’s good news, I don’t want to say it’s bad news, but let’s just say it’s something we haven’t heard a lot lately is a deal goes off the rail when ISS, Institutional Shareholder Services, came out and basically issued a report to Five9 investors that the $14.7 billion that put about a 12% premium on the Five9 stock at the time of the deal should not be completed.

A lot of people, including us, Pat, operated under the expectation that regulatory was not going to stop this deal because there was no good reason for that. Even some of the investigations into China and their relationships were not thought to have stopped this deal, but what I didn’t expect was that this deal would get stopped because of an external advisor coming out and telling Five9 shareholders not to vote, and then the voters actually didn’t vote for it.

Now, the backdrop on this is I think there was something like a 25% price drop in the Zoom stock, and this was an all-stock deal that took place from the time the deal got announced to the time that the deal was supposed to be moving forward. This was on the back of the fact that Zoom’s growth had fallen to a terrible 54% year over year on a pandemic over pandemic quarter. If you hear my sarcasm, that’s because I’m laying it on pretty thick. The growth rate for Zoom is fine.

Bottom line, here, Pat, and because we’re a little bit at time and you and I both have to wrap this show up here pretty quick, and I think this is a topic that warrants a little more conversation than we’re going to be able to give it right now, is that both of these companies will be fine by themselves because Five9 has a very successful product in a growing category. Zoom has a successful product and a platform in a category where they’ve been very successful.

I do believe together they created a larger TAM and it did make a compelling case for Zoom’s platform and horizontal growth into new areas like the contact center. There’s still a strategic partnership between the two companies. The market will still get a benefit from that partnership, but going forward, I think both companies are going to be okay. I think both companies are going to continue to grow. I’m not a hundred percent this is the end of this deal forever, but it does look like right now there’s not going to be another offer tabled in the immediate future.

Patrick Moorhead: Daniel, I mean, you said it best. I like the combination. It was strategically sound. Note in none of the communications from Five9 did they dispel the strategy. We’re talking about price right now. That’s what this comes down to. I don’t think this deal is dead, Daniel, I don’t. Now, on one side, I know that Zoom has very build-it-yourself type of mentality, but I have to tell you, getting call center customers, I think they can build a decent technology. Zoom hasn’t proven to me that on the audio side it has the machine learning chops and automation to be able to build their own and just show up and be successful on day one. I don’t think this deal is dead because it’s not price. I think we’re looking at a very hard negotiation at this point, so anyways…

Daniel Newman: Something to keep an eye on.

Author Information

Daniel is the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise.

From the leading edge of AI to global technology policy, Daniel makes the connections between business, people and tech that are required for companies to benefit most from their technology investments. Daniel is a top 5 globally ranked industry analyst and his ideas are regularly cited or shared in television appearances by CNBC, Bloomberg, Wall Street Journal and hundreds of other sites around the world.

A 7x Best-Selling Author including his most recent book “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor.

An MBA and Former Graduate Adjunct Faculty, Daniel is an Austin Texas transplant after 40 years in Chicago. His speaking takes him around the world each year as he shares his vision of the role technology will play in our future.

Related Insights
Agentic ERP Model
May 1, 2026

Can NetSuite’s Agentic ERP Model Survive the SaaS ‘Apocalypse’ and Win the Next AI Platform War?

Keith Kirkpatrick, Vice President & Research Director, Enterprise Software & Digital Workflows at Futurum, examines how NetSuite's agentic ERP model aims to deliver real AI ROI and counter the fragmenting...
Fusion Applications
May 1, 2026

Oracle Bets on Outcome-Driven AI Agents, But Will Enterprises Buy the Vision?

Keith Kirkpatrick, Vice President & Research Director, Enterprise Software & Di at Futurum, examines Oracle's pivot toward AI agents embedded in Fusion Applications, analyzing enterprise demand for measurable business value,...
Marketplace Integration
May 1, 2026

Assessing Ingram Micro’s Q1 2026: Cyclical Growth or Structural Channel Shift?

Ingram Micro's Q1 2026 results show distributors must shift from logistics to marketplace orchestrators or risk disintermediation as CIOs consolidate platforms and adopt AI....
Microsoft Dynamics 365
May 1, 2026

Is Microsoft Dynamics 365 Contact Center the Catalyst for Agentic CX at Scale?

Keith Kirkpatrick, Vice President & Research Director, Enterprise Software & Di at Futurum, Microsoft Dynamics 365 Contact Center's coordinated AI agents transform customer experience orchestration, challenging fragmented legacy solutions....
Qualcomm Q2 FY 2026 Earnings Show Data Center Entry and Auto Strength
May 1, 2026

Qualcomm Q2 FY 2026 Earnings Show Data Center Entry and Auto Strength

Futurum Research analyzes Qualcomm Q2 FY 2026 results, focusing on data center entry progress, agentic AI positioning across platforms, and continued handset constraints tied to memory supply dynamics....
Cadence Q1 FY 2026 Earnings Driven by Agentic AI Expansion and Emulation Hardware
May 1, 2026

Cadence Q1 FY 2026 Earnings Driven by Agentic AI Expansion and Emulation Hardware

Brendan Burke, Research Director at Futurum Group, analyzes Cadence’s Q1 FY 2026 earnings, focusing on agentic AI product expansion and how automation strategy shapes FY 2026 execution....

Book a Demo

Newsletter Sign-up Form

Get important insights straight to your inbox, receive first looks at eBooks, exclusive event invitations, custom content, and more. We promise not to spam you or sell your name to anyone. You can always unsubscribe at any time.

All fields are required






Thank you, we received your request, a member of our team will be in contact with you.