Rumors Circulate About a RingCentral Take-Over of 8×8

There could be a huge takeover on the way if rumours are to be believed

Rumours are circulating over a potenital RingCentral take-over of 8x8
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Published: November 23, 2022

Ryan Smith

An unnamed source has told the financial news website that RingCentral has approached 8×8 about a potential take-over.

According to the post, RingCentral is said to be working with an investment bank to assess the implications of a potential purchase.

No reports have surfaced regarding 8×8’s position and whether they are open to any possible sale.

Currently, 8×8’s stock is trading at around $3.92, a considerable drop from the price of $21.3 this time last year.

If the rumors are to be believed, 8×8 could be hesitant to sell, given the weak bargaining position that their share price puts them in.

8×8 stakeholders may not feel that the current share price accurately reflects the actual value of the company.

However, if 8×8 is not feeling confident about the company’s future position, then this could be seen as an ideal opportunity to walk away.

In the current market, recent finances may not be a reliable indicator of an organization’s standing as, on the surface, RingCentral is not in a position to make such an offer.

Just weeks ago, RingCentral announced that 10 percent of its workforce is being laid off as it attempts to counter economic uncertainty.

Commenting on the measures during an earnings call, Vlad Shmunis, Founder, Chairman, and CEO at RingCentral, stated:

While we recently made the extremely difficult decision to further rationalize our workforce, we believe this will allow us to be more agile and better align our course with our strategic priorities in the current macro environment.

“This decision was not made lightly, and we understand the impact this has on our people and their families. We’re taking meaningful action to help ease the transition for our impacted employees.

“We want to underscore how grateful we are for their hard work and all their contributions. RingCentral would not be where we are today without them.”

Despite the layoffs, the announcement came in tandem with its third-quarter earnings results, where it surpassed expectations but posted weaker-than-forecasted financial guidance for Q4.

There will be pros and cons on both sides of this rumored acquisition deal, and it remains to be seen whether either party will engage in it.

CX Today will continue to follow this story as it develops and provide updates when it does.



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