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  • Matthew Spencer - Tech Journalist

Video conferencing platform Zoom to acquire Five9 for coping with revenue benefits

Video conferencing via Google or Apple’s software, alongside Skype were the traditional ways before. But after the pandemic hit, people turned over to Zoom. Due to this the company took off and became a sole platform or another name for group calls.

During the pandemic Zoom’s business took off. Within the last 12 months, its share price surged over 220 per cent. Now the company is looking towards buying Five9. It will be sold at $14.7 billion. The stock price of this one is quite similar to Zoom at the moment. Zoom wants to keep profiting the same way after lockdowns end and people’s dependency on group video call fades.

For a company that is solely based on group conferences, it is a bold move. Currently, stocks are sold at $200.18 for each share. And Five9’s shares are sold for $177.6 apiece. After acquisition Five9 will be an operating unit under Zoom. The deal is now pending shareholders’ approval and some other paperwork’s. Both companies are hopeful to combine sectors within 2Q22.

Adjoining shares would seem highly beneficial to adjust benefits once lockdowns lift. In the pandemic, many workers shifted towards the home office. And even students are doing online classes. These translated to more subscription sales and service boosts. Which profited the company a great margin.

Zoom phone might be the service that will be another breakthrough for the company for cloud-based calling. Five9 now sits at a market evaluation of $24 billion. Together they could compete against Amazon or Cisco Systems according to a Bloomberg report. Zoom phone seems like an innovative idea even when most of the technological advancements are already in the market. Nonetheless, this will boost market share, even more, when company revenue starts dropping.

Cisco Systems have contracts with WebEx teleconferencing software. This gives the company edge to capture more market and more revenue. Zoom seems to be following the same footsteps with news of the acquisition. As Five9 works with cloud and centres customers around, it would be a great addition.

To optimise workforce, management of performance and quality in supervising desktop experience, Five9 has all these under their belt with additional experience of handling customers. So, it looks like from customer-friendly service, Zoom may lean toward customer and cloud-based services. Or it can be something new, only time will tell.

Eric Yuan, CEO of Zoom, referred to Five9 as a “herbal are compatible.” According to his thought process Zoom telephone services will be largely benefited by Five9.

Traditional telephone services and corporate phones are trendy of course, but in a digital era, people would move to the next best thing with ease. Of course, it has to be secure and make more sense in the long run.

Most of the messaging apps nowadays offer phone services. Those are internet-based or happens on the cloud. Zoom wants to make something similar and make it traditional like the Zoom video conference or group meeting.

People would hesitate between Google Hangout or Skype. But Zoom was a breath of fresh air and contained everything needed in its bag pack.

Five9 also has intelligent virtual agent support and improved artificial intelligence integration. Migrating to the cloud, visual IVR, automation, statics and analysis will give whole new raw power to the Zoom company.

If we gaze through companies acquiring one another, and being successful in terms of profit or target, this makes total sense. Rather than building a whole company ground up, it is easy to buy one and compete on the market boldly at a larger scale. Because the level global market works, it didn't come here in one day. Months and years of struggle to stay in business is not easy.

Even trillion-dollar companies like Microsoft who could build overnight successes don’t go that way but acquire other businesses. Google workplace suite, Microsoft’s Team’s changes are some of the notable mentions when it comes to communication and needs updates in the technology space.


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