TelephonyBuyersGuide

Vonage IPO still making news, a sound business does matter...

Well, since our last posting, it's been affirmed that the Internet bubble did burst a few years ago and that a sound, long-term business plan does matter.

A few articles that I read during the past few days echo my earlier points and build some credible resources supporting the premise (smile):

- Reuters - Vonage debut shows IPOs need profitable outlook
- TheBusinessOnline - Vonage and MasterCard fall foul of slack IPO market

Despite this, I missed the biggest story of all... even if a business requires a sound plan and management, those without one can still net a market cap of some $2.5B :-)

In closing, I promise that my next entry will be about something other than Vonage:-)

Your thoughts?

Mark

posted by TelephonyBuyersGuide @ 8:08 AM 1 comments

Vonage proves that some people still manage companies as if they're still in the Internet bubble...

Vonage IPO'd to a resounding yawn. Shares fell some 13% from offering price.

After tracking this company loosely for some 3 years, I always saw them as wishing that the Internet bubble never burst. News flash... you can't spend 2 to 3 years worth of revenue to acquire a customer when your churn rate is shorter! Adding insult to injury, most people feel that the Internet phone call business either should be or will be free.

Well, it appears as though the market has figured the strategy to be something similar to my thoughts. Either that, or they too hate the condecending commercials and stupid jingle.

Your thoughts?

Thanks!

Mark

posted by TelephonyBuyersGuide @ 9:02 PM 0 comments