The video conferencing service Zoom wants to strengthen its position with a billion-dollar deal after the explosive growth in the pandemic. But US authorities are examining the planned purchase.
Zoom’s plans to establish itself in the call center business with a billion-dollar takeover are under intense scrutiny by the US government.
A special committee led by the Department of Justice is investigating whether the deal poses risks to the national security of the United States, according to documents on the website of the telecom regulator FCC.
Zoom wants to buy the US company Five9, a specialist in call centers operated in the cloud. This could enable the company to expand its business beyond video conferencing. Zoom wants to use its shares, which have risen in the pandemic, as currency to pay the purchase price of 14.7 billion dollars (12.5 billion euros).
Relations with Russia
The government did not specify in the published documents what exactly it suspected dangers. Zoom himself had pointed out in the last quarterly report that Five9 had developers and business in Russia and that the deal could therefore be exposed to political risks. Meanwhile, the Wall Street Journal wrote on Tuesday that the investigation was triggered by connections from Zoom to China. Zoom, a US company based in San Jose, California, has development activities in China.
A Zoom spokeswoman told the Wall Street Journal that all the necessary documents had been submitted to the relevant authorities and that the process was developing as expected. Zoom also assumes that the takeover can be completed in the first half of 2022.
New league thanks to Corona
Zoom had moved into a new league with the Corona crisis. The company was originally supposed to provide video conferencing for companies. In the pandemic, however, it was not only used in companies: private individuals also use Zoom for all sorts of occasions – from family reunions to yoga classes.
After leaps in sales of more than 300 percent last year, growth has normalized. Zoom therefore tries to use the tailwind to expand its business. The plan is, among other things, to take over the supply of telephony in companies in addition to video conferences.
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