Will Vonage Go Out of Business?posted by MR WAVETHEORY at 9/26/2007 01:28:00 PM
VG lost to VZ and it's VF LOL! Translation: Vonage (NYSE VG) just lost their appeal on some key patents to Verizon (NYSE VZ) and the stock is now down 26% today. It broke the buck so to speak and is now $.96. This stock has been a train ride to hell for investors! VG is burning money at the rate of $50 million per quarter. That's alot of Halloween candy you can buy. J/K. Can you believe this cash pit once had a market cap of $2 billion!? It is now worth less than $200 million. It will be hard for Vonage to raise any money since they lost the lawsuit. Some of the venture investors in the deal include NEA (New Enteprise Associates), IVP (Institutional Venture Partners), and 3i. I hope they sold some on the way down!
PS: Don't feel too bad for the venture capital investors. They bought their shares around $1-2 per share. As far as I can tell, they might even be up! I know it's hard to believe, but the public investors really got screwed by the VCs when they took this company public.
It really gives new meaning to the uh-oh uh-uh-oh commercials.
Maybe they shouldn't have spent so much money on stuff like free phone calls at CES.