US govt to probe Zoom’s $14.7B Five9 deal for natsec risks

A U.S. government committee that reviews foreign investment in telecom is probing videoconferencing company Zoom’s $14.7 billion deal for cloud call center company Five9.

In an August filing with the Federal Communications Commission, the Justice Department, which chairs the committee, said it would review the deal “to determine whether this application poses a risk to the national security or law enforcement interests of the United States.” The Justice Department “believes that such risk may be raised by the foreign participation (including the foreign relationships and ownership) associated with the application.” The Wall Street Journal first reported the probe.

The Justice Department did not say in its filing what the foreign ties of concern were and spokesperson Wyn Hornbuckle declined to answer questions Tuesday.

Five9 spokesperson Allison Wilson declined to comment. Zoom said in an emailed statement that it anticipates getting the required regulatory approvals and closing the Five9 deal in the first half of 2022. Zoom spokesperson CJ Lin did not respond to further questions.