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.