Zoom’s acquisition of about $ 15 billion of call center software company Five9 fell apart Thursday night when companies said they would terminate an agreement that had drawn national security controls.
Five9 said in a press release that the agreement had not provided sufficient support from its shareholders and that the company would continue to operate independently. Allison Wilson, a spokeswoman for Five9, said the company believed it would build on its “current proven momentum” as an independent company.
Zoom’s CEO Eric S. Yuan said in a blog post that although the acquisition had been an opportunity for the company to expand, it was “in no way fundamental to the success of our platform.” A spokesman for Zoom, CJ Lin, said the company had no further comment.
The proposed agreement between the companies, both based in California, had attracted government control. In August, the Department of Justice pushed for a federal investigation to determine whether the agreement “poses a risk to U.S. national security or law enforcement,” according to a letter to the Federal Communications Commission. The agency said it was concerned about the possibility of “foreign participation” in the transaction.
In December, a Zoom director was indicted and accused of working with the Chinese government to disrupt online events held for the anniversary of the Tiananmen Square massacre.