Tuesday, December 20, 2005
Vonage has collected $650M+. Who keeps feeding this company? It is a Marketing company. Not a voice company. There aren't too many assets to purchase. "The Holmdel, New Jersey-based VoIP company is spending money rapidly as it tries to woo new subscribers, extend its network, and build a 911 system. What isn’t clear is how the company plans to reward its long-term investors." It's 1M customer give it about $25M per month. I wonder how much they burn through with advertising, payroll and network expenses.... They reportedly are spending $1M for E-911 (that apparently doesn't work yet). Many analysts are wondering what exit strategy - IPO or sell - it will choose, but "say the company would be wise to move quickly because its lead is narrowing in the service sector it helped to pioneer." FYI, "Skype was valued at about $79 per subscriber."