From rumoured acquisitions to the banning of Office 365 and Google Workspace in schools, here are some extracts from popular news stories this week.
‘RingCentral Approaches 8×8 about a Take-Over’
An Investing.com source has told the financial platform and news website that RingCentral approached 8×8 about a possible take-over.
- Charter Communications Partners with RingCentral on New Offerings
- 8×8 Strengthens Channel Relationships with New VP
- Cape Air Lands on 8×8 to Improve Communications
RingCentral is allegedly working with an investment bank to review the implications of a potential transaction.
No reports have surfaced yet as to 8×8’s position and whether they are open to a sale.
At the time of writing, 8×8’s stock price is trading at around $3.92, down from $21.3 this time last year. The past month has seen the company’s share price creep up 80 cents from $3.12.
If the rumours are true, 8×8 could be reluctant to sell as their share price puts them in a weak bargaining position on paper, which they may not feel accurately reflects the company’s true value.
On the other hand, if 8×8 are not feeling optimistic about the future, this could be seen as the perfect get-out-of-jail-free card.
Office 365 and Google Workspace Banned from French Schools
The French Minister of National Education has confirmed that the use of Office 365 and Google Workspace in schools is prohibited.
Pap Ndiaye, Minister of National Education, recently confirmed that free versions of Office and Google Workspace should not be used in schools due to concerns about privacy rules, competition, and data sovereignty.
Paid versions of these cloud services could have been an option, but they have already been banned due to data safety concerns.
In a reply to Philippe Latombe, Member of the National Assembly of France, Ndiaye said: “The publisher Microsoft has a global policy for education consisting of offering the basic version of its online collaborative suite free of charge.
“Article L. 2 of the Public Procurement Code provides that public procurement contracts are contracts entered into for consideration to meet the needs of the public entity in terms of works, supplies or services.
“Free service offers are therefore, in principle, excluded from the scope of public procurement.”
Office 365 and Google Workspace are prominent examples of free offerings that will not be allowed for use in French schools.
Zoom Lowers Revenue Expectations as Online Business Declines
Zoom has lowered its 2023 annual revenue expectations by $15 million as online business is forecast to drop 8% over the same period.
Revenue for 2023 is now expected to be between $4.37 billion and $4.38 billion, representing around 7% year-over-year growth. In monetary terms, this translates to $15 million dollars lower than its previous full-year guidance.
Zoom attributes $14 million of this forecast loss to the “continued FX (foreign exchange) pressure in Q3 and Q4”.
Eric Yuan, Founder and Chief Executive Officer of Zoom, said: “Zoom is purpose-built to make all kinds of connections possible, effective, and meaningful.
“We have developed and launched more than 1,500 features and enhancements on the Zoom platform this year, advancing how people connect with each other, their organization, and their customers, ultimately, opening the doors wide for creativity and collaboration.
“Of course, even as we celebrate our innovations and customers, we still face the backdrop of a challenging macroeconomic environment.
“We continue to see FX pressure and heightened deal scrutiny for new business but remain focused on delivering happiness to our customers by innovating our platform and expanding our go-to-market capabilities.”
Zoom’s total Q3 2022 revenue, however, was $1.102 billion, which is an increase of 5% year over year and $2 million above the high end of its quarterly guidance.
