Video: Jim Cramer on Oil, Zoom, Bill Ackman Monday's Market Selloff


TheStreet 19 July, 2021 - 08:50am 17 views

Zoom strikes a $14.7 billion deal as it prepares for the post-pandemic world

CNN 19 July, 2021 - 11:01am

Updated 6:44 AM ET, Mon July 19, 2021

Zoom snaps up cloud call center firm Five9

Techradar 19 July, 2021 - 09:03am

$14.7 billion deal expected to close in H1 2022

In a press release, Zoom said it believes the acquisition will “transform how businesses connect with their customers,” as it strives to build the “customer engagement platform of the future”.

The company has seen a huge surge during the pandemic period, with workers across the globe forced to work from home and embrace video calls - but with many companies now mandating a return to the office, Zoom is now looking to diversify its interests and stay profitable.

Founded in 2001, Five9 currently has at least 1,620 employees and serves at least 2,000 clients, according to the company’s LinkedIn page. It provides digital engagement, analytics, workflow automation, workforce optimization and practical AI, helping its customers “reimagine the customer experience”.

After the transaction, Five9 should become an operating unit of Zoom, with Rowan Trollope becoming Zoom President, as well as remaining Five9 CEO, reporting to Eric Yuan.

Furthermore, the company expects “significant cross-selling opportunities” for both companies, and hopes to see Zoom playing an “even greater role in driving the digital future.” The company's Zoom Phone platform also gets a mention, with the hardware likely to become a common sight in Five9 offices.

The deal is expected to be closed in the first half of 2022, and is still subject to regulatory approval and other customary closing conditions.

“We are continuously looking for ways to enhance our platform, and the addition of Five9 is a natural fit that will deliver even more happiness and value to our customers,” said Yuan.

“Zoom is built on a core belief that robust and reliable communications technology enables interactions that build greater empathy and trust, and we believe that holds particularly true for customer engagement. 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."

"We are thrilled to join forces with the Five9 team, and I look forward to welcoming them to the Zoom family.”

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Equity Monday: Zoom buys Five9 as Robinhood sets IPO price range

Yahoo News Australia 19 July, 2021 - 08:27am

This is Equity Monday, our weekly kickoff that tracks the latest private market news, talks about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here and myself here.

It was a big damn morning, so we had to cut some stuff. Here's what we got into:

Stocks and cryptos are off this morning, as inflation and COVID-19 concerns rise.

Zoom is buying Five9. The deal is not super expensive, nor is it cheap. But given the huge percentage of Zoom's market cap that it represents, it's a serious wager from the video conferencing startup.

Carlyle is buying LiveU for around $400 million. TechCrunch broke this news. The deal shows that private equity interest in startups that aren't unicorns.

Robinhood dropped a new SEC filing this morning! That means we have a price range and valuation target to play with. More from TechCrunch on the matter shortly.

From India: A huge round for Lenskart, and a big Series A for GlobalBees.

And we covered this round from Nigeria. A smaller transaction, but one that could prove to be quite neat, we reckon.

The woman is accused of stealing $31,000 as well as allegedly removing 13 teeth from a patient. Find out more about the wild accusations against her.

A disturbing video has been released threatening a Chinese nuclear attack against Japan if it attempts to help defend Taiwan. Find out more here.

A police officer has been praised as a hero after he saved a man’s life using an empty chip bag. See the heart-stopping video here.

A free Lotto Strike ticket has delivered a big win to a western Sydney dad. Find out how he plans to spend his prize.

A Sydney mum is undergoing an extensive search to get her daughter the life-saving medication she needs and she's not the only one. Read more about the distressing situation.

Photos of crowded beaches in Sydney's eastern and northern suburbs have sparked widespread outrage. See the shocking photos that have people fuming.

Australia's troubled vaccine rollout has been given a much-needed boost with the arrival of one million Pfizer doses. Find out if you're eligible.

An expert has revealed what you need to do to get your home prepared for the big change coming. Read more about what she recommends.

It’s one of the most sought-after group memberships in the product testing community and here’s why. Read more about what it's like and how you can join.

Thousands of people have been evacuated as wildfires in the US take a turn for the worse. Find out more about the devastation unfolding in the northwest of the country.

A Queensland couple almost hung up on lotto officials on Monday after believing their $4.8 million win was a prank created by friends. Read more about how they reacted to the happy news.

A dad who admitted to beating his wife to death on an Alaska cruise has been found dead. Read more about how the tragedy unfolded.

NSW has recorded its fifth Covid death from its current Delta outbreak. The latest case is believed to be linked to removalists fined for breaching Covid restrictions.

A woman has been arrested in relation to a fatal shooting after commenting on a local police department's Facebook post. Find out more about the disturbing case here.

The French president's plan to require people to have a Covid 'health pass' to do certain activities has been met with fierce backlash. Find out why.

The removalists who were charged with failing to comply with public health orders after travelling around regional NSW have defended their act. Hear their side of the story.

South Australia has suffered a Covid scare on Monday with a nervous wait ahead. Read about the locations of concern here.

Victoria Premier Daniel Andrews has announced the state will remain in lockdown after Victoria recorded more new Covid-19 cases on Monday. Find out what happens next.

The NSW outbreak continues to grow as Greater Sydney enters its fourth week in lockdown. Find out the latest from the premier's Monday update.

A good Samaritan was struck and killed by another vehicle after she got out and tried to help a driver following a crash in Melbourne. Find out how the tragedy unfolded.

Zoom is buying a cloud call center company for $14.7 billion | Engadget

Engadget 19 July, 2021 - 05:19am

Five9 will become an operating unit of Zoom when the deal is closed, likely in the first half of 2022. "We are continuously looking for ways to enhance our platform and the addition of Five9 is a natural fit that will deliver even more... value to our customers,” Zoom CEO Eric Yuan said in a statement.

Five9 is a 20-year-old firm with 2,000 customers worldwide, including SalesForce and Under Armour, and processes over 7 billion minutes of calls annually. Zoom notes that it was already a "long-term" customer of Five9 and said the partnership will give Five9's business clients access to Zoom products like the multi-platform Zoom Phone app.

The acquisition won't have much of an impact on consumers, as Five9 is largely a business-to-business company. However, Zoom's recent growth has been fueled in part by employees needing to work and communicate from home due to the pandemic. Once that crisis eases, Five9's contact center business will provide another revenue stream.

While most of its products are aimed at businesses, Zoom has also embraced the consumer side of things. Last year, the company released a new category of products called Zoom for Home, with both software and a line of hardware devices. While those products are aimed at employees working from home, they can also be used by consumers looking for a reliable video calling system. 

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Dow Sinks, Zoom Video and Five9, Ackman and Universal, J&J - 5 Things You Must Know

TheStreet 19 July, 2021 - 04:09am

Stock futures declined sharply Monday as investors weighed what impact  higher inflation and rising COVID-19 cases may have on the global economic recovery. 

Contracts linked to the Dow Jones Industrial Average dropped 395 points, S&P 500 futures fell 42 points and Nasdaq futures declined 113 points. The yield on the benchmark 10-year Treasury fell Monday to 1.245%.

Stocks finished lower Friday after surging inflation led to an unexpected decline in U.S. consumer sentiment in early July. For the week, the Dow fell 0.5%, the S&P 500 declined 1% and the Nasdaq dropped 1.9%.

It was the first weekly loss for the S&P 500 following three weeks of gains.

The delta variant of COVID-19 has been spreading rapidly in parts of Asia, including Japan where the Olympics will begin Friday, and in the United States.  

Delta is the most transmissible COVID variant yet, U.S. Surgeon General Dr. Vivek Murthy told CNN. Experts said it was exacerbating the rise in cases among unvaccinated Americans.

Second-quarter earnings season will ramp up this week and next. Profits for companies in the S&P 500 are expected to jump 64% from a year earlier, according to FactSet.

Earnings reports are expected Monday from International Business Machines  (IBM) - Get Report, Prologis  (PLD) - Get Report, PPG Industries  (PPG) - Get Report, AutoNation  (AN) - Get Report, Tractor Supply  (TSCO) - Get Report and J.B. Hunt Transport Services  (JBHT) - Get Report.

Reports are expected later in the week from Netflix  (NFLX) - Get Report, Philip Morris  (PM) - Get Report, Lockheed Martin  (LMT) - Get Report, Johnson & Johnson  (JNJ) - Get Report, Coca-Cola  (KO) - Get Report, Verizon  (VZ) - Get Report, Texas Instruments  (TXN) - Get Report, Intel  (INTC) - Get Report, Abbott Laboratories, AT&T  (T) - Get Report, Union Pacific  (UNP) - Get Report, Chipotle Mexican Grill  (CMG) - Get Report, Snap  (SNAP) - Get Report, Honeywell  (HON) - Get Report, American Airlines  (AAL) - Get Report, Twitter  (TWTR) - Get Report and American Express  (AXP) - Get Report.

The economic calendar in the U.S. Monday includes the NAHB homebuilders' index for July at 10 a.m. ET.

Zoom Video Communications  (ZM) - Get Report agreed to acquire call center provider Five9  (FIVN) - Get Report for about $14.7 billion in stock.

The deal values Five9 at $200.28 a share. Shares of Five9 rose 8.34% to $192.41 in premarket trading Monday. Zoom Video fell 1.96% to $354.87.

Zoom Video has benefited from the shift to work from home during the pandemic and remote schooling. But growth is expected to slow as offices reopen and schools return to in-person learning.

Zoom said in a statement that the acquisition of Five9 will help expand its offerings to enterprise customers and "allow it to accelerate its long-term growth opportunity by adding the $24 billion contact center market."

Hedge-fund billionaire Bill Ackman will buy a stake in UniversalMusic Group with his hedge fund rather than a special purpose acquisition company after the proposed deal was questioned by shareholders and regulators.

Ackman’s SPAC, Pershing Square Tontine Holdings (PSTH), will withdraw its offer for a 10% stake in Universal Music Group, he said in a letter on Monday. Ackman's hedge fund, Pershing Square Holdings, instead will buy 5% to 10% of the music label.

"Our decision to seek an alternative initial business combination (“IBC”) was driven by issues raised by the (Securities and Exchange Commission) with several elements of the proposed transaction - in particular, whether the structure of our IBC qualified under the NYSE rules," Ackman wrote in the letter.

Universal Music Group is the home of musicians Taylor Swift and Drake. It is owned by France's Vivendi.

Johnson & Johnson  (JNJ) - Get Report is exploring a plan to offload liabilities from widespread Baby Powder litigation into a newly created business that would then seek bankruptcy protection, Reuters reported, citing seven people familiar with the matter.

The healthcare giant hasn't yet decided whether to pursue the bankruptcy plan and could ultimately abandon the idea, some of the people said. Reuters said it couldn't determine whether J&J has retained restructuring lawyers to help the company explore the bankruptcy plan.

The company faces thousands of lawsuits claiming its baby powder contained asbestos and caused cancer. J&J in mid-May said it was discontinuing its talc-based baby powder in the U.S. and Canada amid a larger review of products prompted by the COVID-19 pandemic.

Zoom buys cloud call center firm Five9 for $14.7 billion – TechCrunch

TechCrunch 18 July, 2021 - 11:07pm

Zoom is taking advantage of the impressive rise in its stock price in the past year to make its first major acquisition. The popular video conferencing firm, which was valued at about $9 billion at its IPO two years ago, said Sunday evening it has agreed a deal to buy cloud call centre service provider Five9 for about $14.7 billion in an all-stock transaction.

20-year-old Five9 will become an operating unit of Zoom after the deal, which is expected to close in the first half of 2022, the two firms said.

The proposed acquisition is Zoom’s latest attempt to expand its offerings. In the past year, the video conferencing software has added several office collaboration products, a cloud phone system, and an all-in-one home communications appliance.

The acquisition of Five9 — which has amassed over 2,000 customers worldwide including Citrix and Under Armour and processes over 7 billion minutes of calls annually — will help Zoom enter the “$24 billion” market for contact centers, the company said.

“We are continuously looking for ways to enhance our platform, and the addition of Five9 is a natural fit that will deliver even more happiness and value to our customers,” said Eric S. Yuan, founder and chief executive of Zoom, in a statement.

So grateful for this journey, and the fantastic outcome for all. Ty @rowantrollope for the opportunity!🙏 🚀💪

— Anand C ⚡️ (@anandc) July 19, 2021

“Businesses spend significant resources annually on their contact centers, but still struggle to deliver a seamless experience for their customers,” said Rowan Trollope, chief executive of Five9.

“It has always been Five9’s mission to make it easy for businesses to fix that problem and engage with their customers in a more meaningful and efficient way. Joining forces with Zoom will provide Five9’s business customers access to best-of-breed solutions, particularly Zoom Phone, that will enable them to realize more value and deliver real results for their business. This, combined with Zoom’s ‘ease-of use’ philosophy and broad communication portfolio, will truly enable customers to engage via their preferred channel of choice.”

The two firms will do a joint Zoom call Monday to share more about the transaction.

Zoom to Buy Five9 in All-Stock Deal Valued at $14.7 Billion

The Wall Street Journal 18 July, 2021 - 09:46pm

The all-stock deal for Five9 Inc., a provider of cloud-based customer-service software, will help Zoom expand its potential offerings for business and enterprise clients. The growth opportunity will allow Zoom to tap into a $24 billion contact-center market, the company said Sunday.

Zoom, which started trading in the public markets in 2019, has been one of the biggest beneficiaries from the shift to remote work and distance schooling. The value of the company’s shares has more than tripled since widespread lockdowns took hold in the U.S. and elsewhere more than a year ago.

Zoom in recent months has stepped up efforts to ensure it can continue growing even once the effects of the pandemic wane and people return to the office and shift to hybrid work.

“The trend towards a hybrid workforce has accelerated over the last year, advancing contact centers’ shift to the cloud and increasing demand by customers for customized and personalized experiences,” Zoom Chief Executive Eric Yuan said in a blog post announcing the transaction.

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Zoom is buying cloud contact center provider Five9 for $14.7 billion

CNBC 18 July, 2021 - 08:55pm

The deal marks Zoom's first billion-dollar acquisition and comes as the company prepares for a post-pandemic world with employees returning to the office. It's the second-biggest U.S. tech deal this year, behind Microsoft's planned $16 billion purchase of Nuance Communications, according to FactSet.

"We are continuously looking for ways to enhance our platform, and the addition of Five9 is a natural fit that will deliver even more happiness and value to our customers," said Zoom CEO Eric Yuan in a press release.

Five9 closed on Friday with a market cap of $11.9 billion, or $177.60 a share. Zoom said Five9 stockholders will receive 0.5533 shares of Zoom Video Communications for every Five9 share. That values Five9 at $200.28 a share, a 13% premium, and represents about 14% of Zoom's market cap of close to $107 billion.

Zoom has been among the top growth stories in the 16 months since Covid-19 caused a sudden shutdown of offices across the globe, forcing workers in finance, retail, tech and law offices to communicate from remote locations.

After expanding revenue by 326% in 2020, Zoom faces a natural slowdown, especially as companies reopen and face-to-face meetings resume. While the company has launched new products to reckon with coming changes to its business, it's now so big that organic growth alone is unlikely to satisfy Wall Street. It also needs new revenue sources as Microsoft ramps up competition in video chat with Teams.

Zoom's stock price jumped almost 400% last year, though it's dropped 36% since reaching its peak in October.

Five9's revenue climbed 33% to $435 million last year. CEO Rowan Trollope told CNBC's Jim Cramer in May that the company signed two of its largest deals during the latest period, expecting them to generate more than $20 million combined annually.

"We're not having to convince customers that cloud is an acceptable option anymore," he said. "They're just diving in."

The deal brings together two former Cisco executives. Yuan, who founded Zoom in 2011, previously helped build WebEx, which Cisco bought in 2007 for $3.2 billion. He stayed at Cisco until he left to start Zoom.

Trollope will become a president of Zoom and remain as CEO of Five9, reporting to Yuan.

Trollope joined Cisco in 2012 after a 22-year career at Symantec. He eventually rose to become senior vice president in charge of all of Cisco's collaboration products and was seen by some analysts as the top lieutenant to CEO Chuck Robbins. He departed to take the CEO role at Five9 in 2018.

The transaction is expected to close in the first half of 2022. Five9 stockholders still have to approve the deal, and it requires regulatory clearance. Goldman Sachs advised Zoom on the acquisition, and Frank Quattrone's Qatalyst Partners advised Five9.

The two companies will host a call on Zoom for investors on Monday at 8:30 am New York time.

WATCH: Five9 CEO talks demand for call center tech

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