A DOJ-led team is investigating Zoom Video Communication Inc.’s deal to acquire Five9 Inc. over China ties, according to a report by The Wall Street Journal on Tuesday.

  • The department stated that Team Telecom needed to assess a license application that arose from Zoom’s nearly $15 billion deal to acquire Five9 Inc to determine whether it “poses a risk to the national security or law enforcement interests” of the US.
  • Zoom stated that it expects to get regulatory regulations by the first half of next year that could still leave it on track to close the deal when it had planned.
  • The US government has been building up its scrutiny of Zoom’s China ties. The Justice Department last year charged one of its China-based executives with pushing to disrupt video conference democracy protests in Tiananmen Square.

Zoom is also facing numerous ongoing federal investigations related to its dealings with China. Experts in telecommunications security stated such negotiations with Team Telecom could put Zoom as a target for both US and Chinese officials.

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