Vonage might go bankrupt

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Things couldn’t be worse for Vonage. The VoIP provider claimed it could win against Verizon during the appeal of the copyright infringement. Nevertheless, this time, it doesn’t look so confident, as a regulatory filing saying its legal woes could lead to bankruptcy.

The direct impacts include the possible interruption of service, an inability to repay its debt and a decline in its stock that could lead to the delisting from the New York Stock Exchange.

Recently, Vonage’s CEO Michael Snyder stepped down and Vonage chairman Jeffrey Citron announced a substantial reorientation of the marketing strategy to cut down the massive expenditure.

UPDATE 1: Vonage is rumored to offer itself to Sprint for two reasons. The first is the obvious. Vonage’s share price is so low that acquiring the VoIP provider is considered as a bargain by Wall Street analysts. The second reason of such a deal will be that the Vonage-Sprint lawsuit for copyright infringement would find an issue.

Apr 18, 2007 | By Nuno

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  • #0 Participate Media » Blog Archive » Today, April 18, on BuzzTracker (pingback):
  • […] 21Talks lists some of the effects the decision will have on the company. […]

  • #1 VOIPBLOG.IT » I links di oggi (pingback):
  • […] Vonage might go bankrupt Vonage (importante operatore VoIP in USA) rischia la bancarotta per i problemi legali legati all’uso di brevetti di propriet√† di Verizon. Intanto il CEO si √® dimesso ed √® stata annunciato un cambio radicale nella strategia (tagli al marketing) (tags: vonage verizon patents voip) […]

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