After stockholders rejected the proposed acquisition of SurveyMonkey by Zendesk, the company decided to walk away from the deal. Two weeks ago, the company rejected a $17 billion takeover offer from private equity firms.
The company announced it this way.
It was a blow to the company's founder and CEO, who saw SurveyMonkey as a way to push the company's core customer service focus into a wider customer experience market. He put as positive a spin as he could on the result of the shareholder vote.
We planned to acquire Momentive to accelerate our ability to deliver the future of customer intelligence. We will not be moving forward with that acquisition, but we are still committed to helping our customers get more value out of their data.
He said that the company would continue to try and develop products that expand the platform in ways that make sense for the company's core customers. That could mean building instead of buying, an approach that would be more acceptable to stock holders, who didn't like the hefty price tag or the shift in strategy to customer experience.
The Wall Street Journal reported earlier this month that investors were unhappy with the deal and the direction it took the company. The investors seemed to have won the day.
Momentive's CEO put on a brave face, saying in a statement that they are confident in their go- forward strategy despite the fact that the transaction was not approved by the stockholders.
Both companies have to decide how to proceed after the deal is off.
Zendesk spurns $17B private equity takeover offer
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