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

Shares of Five9 Inc. FIVN,
+0.58%
rose 8.4% in premarket trading following the $14.7 billion all-stock buyout deal by Zoom Video Communications Inc. zm,
+1.45%
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,
-0.75%
has increased by 15.2%.

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