5 Comments

Summary:

Vonage, might be better off prepping itself for a sale, instead of an IPO. Financial Times reports that VoIP upstart’s two lead underwriters – UBS and Deutsche Bank – have been secretly telling the company that a “parallel process” might be a better option. Parallel process, […]

Vonage, might be better off prepping itself for a sale, instead of an IPO. Financial Times reports that VoIP upstart’s two lead underwriters – UBS and Deutsche Bank – have been secretly telling the company that a “parallel process” might be a better option. Parallel process, by the way is a fancy way of saying – sell baby sell. As reported earlier, the company is looking to raise $600 million in an initial public offering. For some odd reason, the value being placed on the company is between $1 and $1.5 billion. That’s for 1 million customers. Or between $1000-to-$1500 a customer. Which translates to about 40-to-60 months of revenues. Given that there are some who are ready to offer ludicrous amounts of cash for Skype, well why not? The report says anyone from Verizon to Comcast might be keen on something like this. I am not sure, why they would need to do that, but we all know – Wall Street is full of carny-folks who can sell ice in Alaska. Hey maybe they call Rupert Murdoch, who passed on Skype, but plans to have VoIP within weeks.

Previously: Holy Smokes, Vonage goes for an IPO

You’re subscribed! If you like, you can update your settings

  1. Vonage’s Valuation: The Games Begin

    Om Malik has a post this morning on a Financial
    Times report
    that Vonage’s two lead underwriters – UBS and Deutsche Bank – have been
    secretly telling the company a better option may be a “parallel
    process” – which sounds like a soft s…

  2. A T-Mobile or SK-Earthlink purchase of Vonage would make lots of sense for both parties. wifi+voip+cellular would be a great offering that would appeal to both consumers and businesses.

  3. Om Malik’s Broadband Blog » Thursday, September 22, 2005

    [...] Vonage – forget IPO think BuyOut [...]

  4. Om Malik — » Vonage, picks IPO bankers Saturday, November 12, 2005

    [...] Despite the doubts about their IPO swirling, Vonage is going ahead and preparing itself for an initial public offering, according to Light Reading and after a six-month bake-off,”has chosen Citibank, UBS AG, and Deutsche Bank AG” as lead managers of the offering that could happen within six months. The company declined to comment, Light Reading says. The company’s value is being pegged at $1.5 billion, even if its a buyout and not an IPO. Andy speculates on who might buy them! More @ Light Reading [...]

  5. Om Malik on Broadband : » Another $250 million for Vonage Monday, December 19, 2005

    [...] By now Vonage was supposed to be on track for an IPO, that would have helped the company raise $400 to $600 million from public markets, and help fight a good fight with cable providers, phone companies and others with VoIP ambitions. Well, that (IPO) did not happen, so for now the company is going the route of raising convertible debt – a whopping $250 million – according to a report in the Wall Street Journal. [...]

Comments have been disabled for this post