Vonage IPO Seen as Risky -- Fate May Lie in Buyout
Ritsuko Ando writes for Reuters:
Vonage Holdings Corp. is set to go public even as the money-losing Internet phone service provider faces high costs and growing competition, leading analysts to call it a risky bet whose long-term fate may lie in a buyout.More here.
The company has consistently bled red ink since its start in 2001, and shows no signs of turning a profit as it spends heavily on advertising its voice-over-Internet protocol (VoIP) services to lure subscribers away from traditional phone companies.
Not only does it face pressure from similar services by eBay Inc.'s Skype and Google Inc., it also competes with telephone and cable television giants offering all-in-one packages of voice, Internet and entertainment.
posted by Fergie @ 5/23/2006 07:00:00 AM
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