Wealth Today

Monsters and Critics reports on Vonage being sued after it’s incredible IPO disaster. Apparently, Vonage’s inside investors had been losing money, to the tune of $467 million, and then filed for an IPO and used the generated funds as an “exit strategy”. The shares sold during the IPO decreased in value by 30 percent within the first 7 days. We knew that cell phone carriers would be tough competitors, while VoIP technology is a huge business, but does it require being in everyone’s home?

 I saw a commercial from Vonage over the weekend that was advertising free long distance calls to Europe as well. Will that create enough of an interest by public consumers to replace their analog lines with VoIP products? Will such an offer turn around to increase their revenue and help drive the price of their stock? I think that the law suit may bare more of a critical factor on Vonage’s success than anything else they’ve recently encountered.