Video conferencing company Zoom readies IPO - sources
Zoom Video Communications Inc, a conferencing company started by an
early engineer at collaboration software maker Webex, is preparing for
an initial public offering (IPO), people familiar with the matter said
on Friday.
Zoom is aiming to be valued in the IPO at several billion dollars more
than the US$1 billion valuation it achieved in its most recent funding
round in 2017, when it received US$100 million from venture capital firm
Sequoia, the sources said.
San Jose, California-based Zoom has asked investment bank Morgan Stanley
to lead the IPO, which could come as early as next year, the sources
said. Zoom's IPO plans are not final and could still change, the sources
cautioned, asking not to be identified because the matter is
confidential.
Zoom declined to comment. Morgan Stanley did not respond to a request for comment.
Despite this month's stock market downturn, technology firms are
increasingly ramping up efforts to go public while interest rates remain
low and valuations of private companies stay relatively high.
Reuters reported previously that CrowdStrike, a security software firm,
had hired Goldman Sachs Group Inc to lead an IPO that could value it at
more than US$3 billion.
Cloudflare Inc, a U.S. startup whose software makes websites load faster
and with greater security, is preparing for an initial public offering
(IPO) that could value it at more than US$3.5 billion, Reuters reported
earlier this month.
Founded in 2011, Zoom provides cloud-based video and audio software to
companies that has become a mainstay in conference rooms around Silicon
Valley and replaced pricier and older phone software made by companies
such as Avaya, Mitel and Cisco Systems Inc.
Eric Yuan was one of the founding engineers at WebEx, which was sold to
Cisco for US$3.2 billion in 2007. Other investors in Zoom include
Emergence Capital, Horizons Ventures, Qualcomm Ventures and biotech
billionaire Patrick Soon-Shiong.
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