Zoom Buys Five9 in $14.7 Billion Deal To Prepare for a Post-Pandemic World (cnn.com) 14
Zoom, the video-conferencing platform that became hugely popular during the Covid-19 pandemic, is spending a whopping $14.7 billion on cloud-based software company Five9 to boost its appeal with business clients. From a report: Zoom announced the acquisition Sunday night. In a statement, it said the move will "help enhance Zoom's presence with enterprise customers and allow it to accelerate its long-term growth opportunity." Five9 provides software to customer service centers for over 2,000 clients around the globe. Eric Yuan, Zoom's billionaire CEO and founder, said the addition of Five9 was a natural fit. "Enterprises communicate with their customers primarily through the contact center, and we believe this acquisition creates a leading customer engagement platform that will help redefine how companies of all sizes connect with their customers," he said in a statement.
$7M per client (Score:2)
$14.7 billion for a company with 2000 clients.
That is $7M per client.
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They probably will become the #1 client.
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Nahh mate. All about the data mining and insider trading billions to made every years. YEAH, you moronic corporation delete ZOOM yesterday, seriously, their plan to data mine you business meetings and sell the data mined to corrupt hedge funds for insider trading. STOP NOW, seriously, or your corporation will economically suffer as your competitors can data mine your remote meetings.
Cheap in the modern tech age, is not good, it is utter crap and an insanely wild security risk. DO NOT DO. Any corporation tha
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Never forget in high finance, the area of true psychopathy at play, all kinds of lies can be told when buying corporations with shares. A con, you claim to have spent TEN BILLION dollars but you reality you spent nothing just swapped shares and then in a flight of psychopathic marketing claimed entirely imaginary values for the share swap. The company ain't worth TEN BILLION DOLLARS, on no, that's a fiscal con. You issue ten billion dollars worth of your junk bond shares, to buy the shares of the company yo
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While that seems a lot for the average person, and small business. But if these are large enterprise customers paying millions per year for Customer Service and Customer Contacts is actually a bargain for them.
Zoom knows that focusing on the Average Consumer isn't going to cut it, especially if people start going back to the office. However if they can get a good number of big accounts that would be enough to cover their costs.
Zoom pushed the pandemic buzz a bit too hard for a company its size, it grew to
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> That is $7M per client.
So it sounds like they're trying to set a standard that you use Zoom to talk to Customer Service instead of a phone call.
This actually seems reasonable.
If they're successful, the denominator becomes hundreds of thousands, at least.
Post-pandemic? (Score:1)
Apparently Zoom is currently worth $104B (Score:2)
Meanwhile, Intel is worth $220B. You'd expect a video sharing company with 4,000 employees wouldn't be worth half as much as a chip manufacturer with 110,000 employees. Stock market investors are living in interesting times ...
https://finance.yahoo.com/quot... [yahoo.com]
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Companies are valued by the size of their future profits, not the size of their current payroll.
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Five9 is a 20 year old company that has never been profitable. -40mil last year, -15mil first quarter of this one.
Re:Apparently Zoom is currently worth $104B (Score:4, Informative)
You would expect a company's existing profits and revenues to also be factored into their value.
Zoom's $2.6B revenue is still dwarfed by Intel's $77B. How would Zoom ever make $77B/year? $10 per person from the 7.67 billion population of the world?
Supply Chain? (Score:2)
It is like someone called the Kaseya [theguardian.com] ransomware attack "the biggest ransomware attack on record" bad and Zoom went "hold my beer".
Nothing to worry about here.