Following the fallout after its failed acquisition of Momentive Global, Zendesk is now working with advisory firm Qatalyst Partners on a potential sale.
However, according to Bloomberg, Zendesk has not made a final decision regarding whether it is ready to sell and may yet remain independent.
At this point, the only certainty is unrest at the top of the company following the collapse of its Momentive deal. Indeed, shareholders seem to be ramping up the pressure on the board of directors.
JANA Partners is a prominent example, publicly pushing for a change. If that change were not to occur, they stated that Zendesk "should be sold".
Venting his frustration in an open letter, Barry Rosenstein, Managing Partner at Jana Partners, also suggested that the board should appoint its four director nominees. He said:
JANA Partners put forward four highly qualified, independent directors who are committed to improving governance and accountability at Zendesk while working to rehabilitate the Company’s damaged relationship with investors. Now, more than ever, the need for meaningful change at Zendesk is abundantly clear.
Perhaps this pressure is starting to penetrate through to the upper echelons of Zendesk. Indeed, in February, the company rejected a $17BN private equity takeover bid. At the time, Zendesk was vehement in dismissing the offer on the grounds that it undervalued the company. Yet, due to recent events, the leading helpdesk software provider is likely to be more open to any incoming offers.