Zendesk will not absorb SurveyMonkey’s parent company, Momentive, into the business. Indeed, Zendesk shareholders were not in favor of the acquisition plans.
Zendesk thought it would add additional value by acquiring Momentive. Namely, Zendesk offers SaaS products that enhance customer service. Add Momentive, and Zendesk has a portfolio to optimize the entire customer experience.
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Zendesk shareholders halt SurveyMonkey acquisition
There is just no longer talk of an acquisition, CEO and founder Mikkel Svane announced in a blog post. Svane writes that Zendesk will continue to focus on customer service for the future.
No support
An expansion into full customer experience no longer seems to be in the cards, which is exactly what shareholders would like to see. The Wall Street Journal reported earlier this month that investors preferred not to see the deal go through.
According to the news outlet, support could not be found due to the large sum of money that Zendesk had left for Momentive, namely $4.1 billion. Furthermore, the expansion of Zendesk’s main business would have received much resistance.
Preventing Conflict
Just two weeks ago, Svane waved away a group of private investment firms with a takeover offer for Zendesk. The group suddenly offered $17 billion to acquire Zendesk.
According to the board, the deal could lead to conflict among shareholders in the acquisition of Momentive, which was still being planned at the time. Both deals are now off the table in one month.