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It was supposed to be one of the hottest initial public offerings of the year, but like so much in the company’s history, Vonage’s IPO was more stumble than soar (see “Sure, I remember Vonage … what’d they do again?“). Shares in the company began trading May 24 on the New York Stock Exchange at $17 apiece. Since then, their price has fallen 26 percent, to $12.50, making Vonage the poorest-performing IPO of the year to date (see “Honey, remember how disappointed we were when we didn’t get our full Vonage IPO request?“). Today, the company, which gave its customers a chance to buy as much as 15 percent of the 31.25 million shares that were offered last week, is facing brickbats from those who did and worse, the chance that they may balk at agreements they have made to buy shares (see “Now why couldn’t Google have done something like this?“). If they do, Vonage will be stuck with the bill. In its amended prospectus, the company indemnified its underwriters against certain liabilities, among them the chance that customers might refuse to purchase the IPO shares they’d reserved. Now Vonage could take legal action against customers who decline to exercise their trades. But that would create a lot of ill will for a company that’s spent so much on customer acquisition. “Clearly they’ve gotten a significant amount of bad press, and for a company spending a lot of marketing to get customers, they will have to spend even more to keep customers from defecting,” Richard Greenfield, an analyst at Pali Research, told the New York Times. Little wonder then that Vonage has apparently decided against playing hardball. “While all avenues are available to us we cannot imagine alienating our customers in that way,” Vonage said in a statement issued to CNBC. “If certain … customers don’t pay, we expect to repurchase shares from the underwriters if necessary.”


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  • mako

    pigs gets slaughtered..vonage didnt need to be priced so investors made $2B……their magic number

  • MarketIsSmart

    Vonage should be very happy. The bankers misjudged demand and overpriced the deal, resulting in more proceeds to the company at a lower cost (more dollars raised per % ownership sold). In other words, they would have had to sell more of the company to raise the same amount at a lower valuation.

  • rg

    I find joy when an innovative company makes money for investors and continues to innovate (google) and I also find joy when a company that has the worst customer service that I’ve ever experienced (vonage) takes a dive. it adds to the saying “what goes around comes around.”

  • Kevin

    Keep in mind that the stock market in general is in a decline. Vonage and their shareholders may only be the victim of poor timing. It might be time to buy their stock to reap the rebound of the market in general.

  • Ahh, this explains the email I got from Vonage, “clarifying” that they are not offering to repurchase shares. I was wondering why that came out of the blue.

    (I knew it was a roll of the dice, and I lost. So be it. I’ve paid for my shares — my word is worth a lot more than the decline in value. Anyway, VG has done very well for me compared to my normal investments 🙂

  • Ever since I lost with Vonage, I’m using the web to combat their non-response when trying to talk to someone in customer relations. Most of the time I received a voicemail that said leave a message…then said mailbox is full. Other times I received an India person who was reading from a script and you could not understand them. Now for the last 5 months I’ve been suggesting to Vonage customers to:


    Viatalk is great, less expensive and has many more features…and american customer service representatives!

    It’s easy to port your Vonage number and takes about 3 weeks to do so. ViaTalk gives you a temporary number and most Vonage Voip routers work with ViaTalk. ViaTalk will also provide one for free with a 12 months service agreement. This is a great way to voice your disgust to Vonage…Port to ViaTalk!


    fyi – I have no financial interest in ViaTalk. I do have in Vonage which is probably stupid for me to do this but I’m planning to sell and take a loss on my taxes.

  • morganusvitus

    The site looks great ! Thanks for all your help ( past, present and future !)

  • Hi Jim. Photos i received. Thanks

  • hi all.