https://techcrunch.com/2021/07/19/the-zoom-five9-deal-is-a-big-bet-for-the-video-conferencing-company/

Zoom, a well-known video conferencing company, will buy Five9, a company that sells software allowing users to reach customers across platforms, and record notes on their interactions. As TechCrunch noted this morning, the deal is merely “Zoom’s latest attempt to expand its offerings,” having “added several office collaboration products, a cloud phone system, and an all-in-one home communications appliance” to its larger software stack in recent quarters. Both companies are publicly traded.

But the Five9 deal is in a different league than its previous purchases. Indeed, the $14.7 billion transaction represents a material percentage of Zoom’s own value. That tells us that the company is not simply making a purchase in Five9, but is instead making a large bet that the combination of its business and that of the smaller company will prove rather accretive.