Zoom may face delay on key Five9 deal after DOJ review: Analysts

Zoom Video Communications Inc’s proposed $15 billion deal for cloud-based call center operator Five9 Inc may be delayed by a U.S. Justice Department-led committee review but is unlikely to be scrapped, analysts said on Wednesday.

The committee is reviewing the deal to see if it “poses a risk to the national security or law enforcement interests”, according to a letter filed with U.S. regulators.

Zoom agreed in July to buy Five9, its biggest deal yet, to diversify from its core video conferencing services that helped power its meteoric growth at the start of the pandemic. Competition has also intensified from Cisco, Microsoft’s Teams and Salesforce’s Slack.