Looks like one-time hot VOIP company Vonage has got its work cut out for it. While the company was once considered disruptive, now it's got one foot in the grave due to mismanagement, excessive spending and a potentially fatal patent run-in with Verizon. The company has been losing money steadily and it's stock (NYSE:VG) cratered some months back wiping out $2 billion in market cap. The stock is trading in the single digits, now well below it's IPO price of $17. In fact the market cap seems to be hovering just over cash-on-hand. Easy come easy go.
The company recently sacked the CEO and is now looking to work around the patent infringement issues. But the real issue may be seen in the dismal customer churn and the fact that Vonage as a business just wasn't disruptive enough; it wasn't really creating a new market and there was little unique about its offering.
- NY Post: Say Bon Vonage
- InternetNews: Vonage Boots CEO for Disappointing Results
- Red Herring: Vonage Touts Patent Workarounds
- OnDisruption: All That's Left is the Crying, Bullet to Head
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