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published in Blogs
Sep 19, 2021
Zoom Video (ZM, $287.68) shares rise, on reports of ISS to recommend Five9 holders to reject takeover bid

Zoom Video (ZM, $287.68) shares rise, on reports of ISS to recommend Five9 holders to reject takeover bid

Zoom Video Communications shares rose on Friday, following a report that a shareholder advisory service is recommending Five9 Inc. investors to reject the video-conferencing company's proposed $15 billion acquisition bid.

According to a CNBC report, Institutional Shareholder Services will recommend that Five9 shareholders vote against the takeover at a special meeting on September 30.

The all-stock deal was first proposed in July, when Zoom offered Five9 shareholders 0.5533 of a Zoom share for each of their holdings, implying a price of $200.28 each. Currently, that bid is at a lower implied price of  $154 per share.

Zoom expects that the Five9 takeover will expand its total addressable market by around $24 billion.

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