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Summary:

It has been almost two months since Vonage filed its S-1 indicating that it was interested in going public and raising around $250 million from the public markets. And it has been two months since it updated that document, which to Wall Street insiders means that […]

It has been almost two months since Vonage filed its S-1 indicating that it was interested in going public and raising around $250 million from the public markets.

And it has been two months since it updated that document, which to Wall Street insiders means that the company might actually be looking to shop itself to another player. “It could be that Vonage’s underwriters have tested the waters and may see that an IPO may not raise the necessary money for Vonage to continue deploying its marketing plan,” David Menlow, president of IPOfiancial.com tells CNN/Money.

Cash is going out like crazy, competition is rising – tough times, but you already knew that. “I think they are looking for a buyer. Going public is something in their back pocket,” Greg Gorbatenko, an analyst with Jackson Securities tells CNN/Money. Who is going to buy them? Isn’t that the billion dollar question? Gorbatenko suggests Qwest, but I find it hard to buy into that. I think like the IPO, finding a buyer would also be a big challenge for the company.

All GigaOM stories on Vonage

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  1. If I was shopping for Voip players, then I would rather take Gizmo or TelTel from the produce section. Buying Vonage is like buying milk. They don’t have any technology. Their brand is beginning to really get stale. Soon, it will expire. What do they really have to offer? A lousy business model that requires a phone line from an incumbent. Great, I got two phone bills now instead of one.

  2. Its IPO or bust I’m afraid. Its funny how Facebook can (claim) to demand a $2 Billion valuation (Well maybe not) and Vonage with paying customers is unable to do a $250 Million IPO.

  3. There is some speculation that Qwest might try and gobble up Vonage.

  4. OM,

    You really don;t see the light! They just brought in a new CEO, he’s been on board less the 2 months. It takes a bit of transition to get a CEO prepped for a road show.

    The company has 1.5 million consumers. They blow Skype away, they dominate VoiP, there still building a brand, they have stategic distribution deals and they have more revenue then Skype ro any other provider.

    Are you jealous ?

    What’s your beef with Vonage, maybe you should drink some koolaid and loose a few pounds.

  5. Jesse Kopelman Monday, April 3, 2006

    Hey, I said Qwest months ago.

  6. Vonage is terrible – anyone would be foolish to invest at this point. It would be one thing if they left their customers dissatisfied, but the process through which a person must go to cancel is so excruciating that their customers become enraged. It won’t take long before word of mouth yields a reputation for this company that is so tarnished that not even extra strong industrial grade Tarn-X could fix it.

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