US government examines Zoom’s plans for billions in purchases

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The video service wants to expand its business beyond video conferencing.

(Photo: dpa)

San Jose Zoom’s plans to establish itself in the call center business with a billion-dollar takeover are under intense scrutiny by the US government.

A special committee led by the Justice Department is investigating whether the deal poses risks to the national security of the United States, according to documents on the website of the telecom regulator FCC. The trigger is the connections from Zoom to China, reported the “Wall Street Journal” on Tuesday.

Zoom wants to buy the US company Five9, a specialist in call centers operated in the cloud. This could enable the company to expand its business beyond video conferencing.

Zoom wants to use its shares, which have risen sharply in the pandemic, as acquisition currency to pay the purchase price of 14.7 billion dollars (around 12.5 billion euros).

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A Zoom spokeswoman told the Wall Street Journal that all necessary documents had been submitted to the relevant authorities and that the process was developing as expected.

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