(WSJ) US Justice Department is reviewing national security risks posed by the $15 billion buy deal by Zoom Video Communications Inc. for Five9 Inc.
The Justice Department says there could be national security risks due to Zoom’s foreign ownership and relationships, especially with China.
The investigator wants the Federal Communications Commission to withhold the deal application until the review is complete.
Zoom anticipates regulatory approvals by the first six months of 2022, even as Washington ramps up scrutiny of the videoconference giant due to China ties.
Experts are warning that negotiations with Team Telecom involving FCC- regulated companies such as Five9 could expose Zoom to further scrutiny from both the US and China.
Zoom is still under federal scrutiny in California and New York over its relations with China and policies for protecting and storing data.
ZM: NASDAQ is down -0.59% on premarket, FIVN: NASDAQ is down -0.62% on premarket.
