Zoom spends $15 Billion to buy a cloud software provider ‘Five9’

Ever since the spread of Covid19 resulting in a global pandemic and lockdown, Zoom has been at its height since its launch in 2013. The platform reportedly holds 200 million meetings daily with over 3.3 trillion registered meeting minutes.

According to Zoom, to enhance consumerism through business engagement, the platform is now looking to make a deal worth $14.7 billion to buy the cloud software provider Five9. As Facebook and Google shift their focus on elevating their video features to combat the rising platform, Zoom deems it necessary to scale up its quality as well.

The merging of both the companies is expected to help Zoom reach heights it has never before. Zoom will be able to progress long-term by adding a large contact market worth $24 billion. It will also aid in the Zoom phone service by adding the subsiding company’s large consumer base. Since Five9 is one of the best cloud-based services, adding that to Zoom will help enhance customer interactions and experience by a large margin.

Furthermore, Five9 is also expected to become the chief operating unit of the company while its current chief executive is to become the president of the company. Until the deal is closed next year, the chief executive, Rowan Trollope, is supposed to act as the chief in charge.

According to resources, Five9 will receive a share of Zoom’s stock as well, amounting up to 0.5533. The stock share does come with a condition, the number of stocks being directly proportional to the shares Five9 receives as according to the pact.

At the end of the day, Five9 will have owned a hefty revenue of $14.7 billion per $200.28 per common stock. This is in accordance with the share price of the Zoom Class A closing price on 16th July.

Due to the transfer of activities to virtual, a lot of platforms have seen humongous surges in their usage. Zoom reportedly rose to 45% over the past year alone while Webex and Microsoft have also observed noticeable changes. Since socialization has took online measures too, Zoom isn't used just for business purposes, hence explaining the sudden surge.

Since the pandemic doesn't seem to be ending any time soon, economists predict cloud-based conferencing to reach the clouds by the end of this year. An estimated amount of $5.42 is to be expected from these platforms alone by next year while last year, the figure remained at $5.02 billion.

While all sites have contributed majorly to the stated figure, Zoom and Cisco have indeed been at the forefront leading the rest.

We expect Zoom to overcome the competition set by various platforms and continue to strive even after the pandemic as more people adapt to online services.

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