Why Is Zendesk (ZEN) Stock in the Spotlight Today?

Software development company Zendesk (NYSE:ZEN) is enjoying a strong day in the market on rumors the company has pursued potential buyers for a sale. ZEN stock is up more than 6% so far this morning on the exciting report.

The outside of a Zendesk (ZEN) office building.
Source: Ken Wolter / Shutterstock

So, what do you need to know about Zendesk today?

Well, last night Bloomberg released an article detailing evidence that Zendesk may be looking into a potential sale. Indeed, the company has apparently already reached out to potential buyers, which include private equity firms and software companies. Additionally, Zendesk has hired Qatalyst Partners to advise the potential company sale, as per an anonymous source.

In February, Zendesk made a statement announcing an unsolicited proposal the company received from a private equity firm. The potential deal valued the company between $127 and $132 per share. As such, this week’s news comes as little surprise.

What else do you need to know about Zendesk lately?

ZEN Stock Soars on Potential Sale

Bloomberg’s report this week comes hot off of Zendesk’s failed takeover of Momentive (NASDAQ:MNTV), the company behind SurveyMonkey. Indeed, this past February Zendesk investors rejected the potential acquisition, questioning the merit of the deal.

Since then, Jana Partners, a major Zendesk investor, has closely scrutinized the company. The firm has claimed Zendesk needs to undergo major rehabilitation and urged shareholders to vote for its board of director nominees.

Despite the company’s recent hiccups, Zendesk, best known for its customer support platform, has generally held strong. While ZEN did see something of a selloff early in the year, the stock has managed to somewhat regain previous territory. At $129 per share, the stock isn’t trading too far from its all-time high of $157, achieved in February 2021.

This week’s news has come as something of a bullish indicator for Zendesk investors eager for a fresh start.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

Article printed from InvestorPlace Media, https://investorplace.com/2022/04/why-is-zendesk-zen-stock-in-the-spotlight-today/.

©2022 InvestorPlace Media, LLC