"Preparing for Post-Corona"... Zoom Acquires Cloud Company Five9 for 17 Trillion Won

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Suhwan] The video conferencing platform Zoom has agreed to acquire cloud-based call center company Five9 for $14.7 billion (approximately 16.8 trillion KRW).

According to Bloomberg on the 18th (local time), Zoom is making its largest-ever acquisition by purchasing Five9 for $14.7 billion.

Previously, Zoom gained tremendous popularity as a video conferencing platform used worldwide for remote work and online classes during the COVID-19 pandemic.

Riding this wave of popularity, Zoom's stock price surged by about 400% last year.

However, as signs of economic reopening emerged after the COVID-19 pandemic, demand for remote work and online classes was expected to decline, raising concerns about potential impacts on Zoom's revenue.

Additionally, intensified competition from other companies such as Microsoft's Teams and Google's business software added to the concerns.

The reason behind Zoom's acquisition of a cloud-based call center company is analyzed as a strategic move to shift focus from its core video conferencing business to cloud-based telephony services, aiming to create new revenue streams.

A Zoom representative stated on the day, "Through the acquisition of Five9, we can enter the $24 billion contact center market and explore long-term growth opportunities."

The company expects that acquiring Five9 will allow it to secure additional clients and utilize Five9's software in Zoom Phone, Zoom's cloud-based telephony service.

Currently, Five9's major clients include business software company Citrix, mobile healthcare provider Athenahealth, and apparel company Under Armour.

Meanwhile, researchers at the University of Toronto raised suspicions that Zoom routes some video conferences conducted on its service through Chinese servers. Concerns arose that Chinese authorities could eavesdrop on meetings held on the Zoom platform, leading to increased criticism of Zoom and prompting the company to issue a public apology.

This content was produced with the assistance of AI translation services.