202121 Sep

U.S. committee is reviewing Zooms $14.7 billion deal for Five9 on national-security grounds

Summary

A U.S. government committee is reviewing Zooms agreement to acquire cloud contact center software company Five9 for $14.7 billion on national-security grounds. According to a letter dated Aug. 27, the Federal Communications Commission was asked to refer the case to the Committee for the Assessment of Foreign Participation in the United States Telecommunications Service Sector. Zoom is based in San Jose, California, and founder and CEO Eric Yuan, a native of China, is a U.S. citizen. The company has a significant research and development hub in China, and last year House Speaker Nancy Pelosi of California referred to Zoom as "a Chinese entity" during an MSNBC interview. In its latest earnings report in August, Zoom acknowledged that the business could face risks related to Five9s operations in Russia.

Source: Cnbc

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