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Which Credit Card Rewards Does the IRS Care About?Vonage Holdings Corp. (NYSE:VG) has lost again.
A federal judge today ordered Vonage to quit using technology from Verizon Communications Inc. (NYSE:VZ) patents that its infringed upon.
Judge Claude Hilton won't formally enter the injunction for another two weeks while he considers Vonage's request for a stay, according to the Associated Press. Vonage has said that service won't be interrupted if it loses the Verizon case.
Investors seem to think otherwise. Shares of Vonage plunged 24 percent on the news. They have dropped 56 percent so far this year.
I've said it before and I'll say it again, Vonage is heading toward oblivion.
Even without the patent dispute, Vonage was in trouble. Now, the Holmdel, New Jersey-based company is toast. It's kaput. It's roadkill.
Vonage is too small to compete against larger companies like Comcast Corp. (NASDAQ:CMCSA). About the only thing that can save Vonage is a buyout from either private equity or a larger rival, but I'm not sure that will happen iunless the Internet phone company prevails on appeal.
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Reader Comments (Page 1 of 1)
3-24-2007 @ 5:19PM
Gene said...
Can Vonage get some love out there, please? They are just trying to give consumers what they want- a phone line at the house that they don't pay through the nose for! That's why they double their customers and revenues every year. Vonage isn't perfect, no company is, but they have saved my family $1200-1500 over the last two years we've had them. HANG IN THERE VONAGE! WE'RE PULLING FOR YOU!