Zoom Under Probe
Zoom wants to buy the U.S. customer-service software firm Five9 for nearly $15 billion, but a Justice Department-led interagency panel called "Team Telecom" is now probing the deal's national-security implications. That's probably down to Zoom's China ties. Ironically, the U.S. government probe could also now increase scrutiny of Zoom in Beijing. Zoom founding team has a Chinese lineage, notes Fortune.
A Justice Department-led panel is investigating Zoom Video Communications Inc.’s deal to buy an American customer-service software company, citing potential national-security risks posed by the U.S. videoconferencing giant’s China ties.
The department said the interagency committee—known as Team Telecom—needed to review a license application that arose from the San Jose, Calif.-based company’s nearly $15 billion deal to buy Five9 Inc. to see if it “poses a risk to the national security or law enforcement interests” of the U.S., according to a letter posted on the Federal Communications Commission website. The department said there could be a risk from “the foreign relationships and ownership” associated with the application.
