Zoom may invest in a $5 billion SPAC deal to take event-manager Cvent public, report says
- Zoom is a potential investor in a SPAC deal that could take Cvent public, Bloomberg reported.
- The video-conferencing group is apparently vying for a 10% stake.
- Zoom recently announced a $14.7 billion deal to acquire Five9 in its biggest acquisition yet.
Zoom is in discussions to invest in a $5 billion blank-check deal that would take event-management software company Cvent public, Bloomberg reported on Wednesday.
The popular video-conferencing app is a potential investor in Dragoneer Growth Opportunities Corp. II, which is merging with Cvent in a transaction that values the cloud-based company at more than $5 billion including debt.
Zoom is trying to secure 10% of the equity being raised to support the deal, Bloomberg said, citing sources. The investment could complement Zoom's burgeoning live-events strategy.
The company has been expanding its business through a series of recent product launches. On Wednesday, it announced the launch of a platform for hosting interactive and immersive virtual events - Zoom Events. Other new products include Zoom Phone, Zoom Room, and Zoom for Home.
Its software can also be used to administer chats, talks, and meet-ups on Cvent's managing platform.
Zoom declined to comment on its potential investment.
During 2020, the app became so popular that it was used for everything from graduation ceremonies to reunions, happy hours, and engagement parties. It recently went a step further to diversify beyond video chat by making its biggest acquisition yet, the near-$15 billion purchase of cloud contact center software-maker Five9.
Analysts say it could be looking at 11 other companies including Calendly, Twilio, and 8x8 to move beyond video calls.
Zoom's stock price has surged more than 35% in the past 12 months, and is up 4% so far this year.