Five9 Shares Rise, Zoom Shares Drop After Announced $14.7 Billion All-Stock Merger

Shares of Five9 Inc. FIVN,
rose 8.4% in premarket trading following the $14.7 billion all-stock buyout deal by Zoom Video Communications Inc. zm,
was announced over the weekend, but traded below the deal’s implied price at Friday’s closing prices as Zoom’s shares collapsed. Zoom’s stock fell 2.0% before the opening. Under the terms of the deal, Five9 shareholders will receive 0.5533 Zoom shares for every Five9 share they own. Based on Friday’s closing prices of $361.97 for Zoom and $177.60 for Five9, the deal valued Five9 shares at $200.28 each, as a 12.8% premium and above the record 1 March 2021 from $197.79. But Five9 shares are currently trading about 3.9% below that price of $200.28. Year to date, Five9 stock is up 1.8% through Friday, while Zoom stock has gained 7.3% and the S&P 500 SPX,
has increased by 15.2%.