Zoom/Five9: Data-Protection, Legal Compliance Plans Would Address Likely National Security Concerns, Experts Say

CFIUS and Industrial Security attorney Antonia Tzinova spoke to The Capitol Forum about Zoom Video Communications’ proposed acquisition of cloud customer-service company Five9 and how the U.S.' potential national security concerns can be mitigated. According to the article, to ease concerns, Zoom hired board members with national security credentials, including H.R. McMaster, former President Trump’s national security adviser, and former Homeland Security Secretary Janet Napolitano under President Obama.

“The appointment of McMaster and Napolitano to the board is helpful,” said Antonia Tzinova. “It shows that Zoom is open to mitigation...These moves will send a positive message to U.S. officials."

However, according  to the article, even if Zoom successfully resolves the biggest security concerns through the Team Telecom review, the Five9 transaction could still undergo additional scrutiny by CFIUS.

“After Team Telecom concludes its investigation, it can still refer the deal to CFIUS. The two regimes are entirely separate, though often done by the same people.”

(Article available to members only.)