Vonage IPO Plans: You're Joking, Right?
So Vonage thinks it's worth $2.6-billion? I wonder what kind of numbers their investment bankers crunched to come up with this pie-in-the-sky number? Vonage is a money-losing business that needs to spend heavily on marketing so it can continue to attract and retain consumers at a time when the cablecos and carriers are start to get more serious about the VoIP market. It strikes me as a desperate attempt by Vonage's investors, who have ponied up more than $400 million in venture capital, to get a decent return on their investment. Now, the $64,000 question is whether this deal will get done. Of course, it will because many institutional investors have no choice but to take a piece of this dodgy deal or risk getting cut out of the more attractive IPOs. I mean, if Corel Corp. - which “competes” against Microsoft in the office productivity market - was able to get its IPO out the door earlier this week, Vonage can do it too. If I was an investor, however, I wouldn't touch the Vonage IPO with a 10 foot pole. Caveat emptor!
Update: IP Democracy has a chart looking at Vonage's top line financials for the past 3+ years. For my post looking at Vonage's S-1 filing, click here.
April 28th, 2006 at 9:57 pm
Are you kidding,
Did you see how many gross additions they had int he first qtr. No offense dude but you must be a jealous wannabe.
They have a proven business model, if they wanted to stop markeitng tomorrow they'd be rollign in posotive cash.
Guess you never heard about laying foundations for the future.
May 14th, 2006 at 11:59 pm
You make me laugh (and just because of your bad grammar). You sound like the same clowns who thought the Google IPO was a “pie-in-the-sky” number with its initial public offering pegged at ~$84. Remember the old proverb, hero: he who laughs last….
I make more on the Google IPO (riding the clib to $210/share and some change) than you have made your whole life.
PS…learn subjunctive tense, please. “If I was an investor, …” If you WAS half as smart as you think you are, you would know it's “were,” champ.
May 15th, 2006 at 12:04 am
What did you expect from Mark? He's Candian, remember? They have made not a single contribution to the human condition, and this blog is a perfect case-in-point.
Canucks make me laugh. USA sneezes; they catch a cold. Socialist pricks.