Thursday, June 01, 2006

Vonage Holds Customers to IPO Pledge

Vonage shares have taken a major smackdown since going public at $17. Now the internet phone company, whose stock has dropped more than 29 percent since its stock market debut, said late Wednesday that customers who agreed to buy into its initial public offering last week must follow through on their commitment to buy their shares.

I can see their point, but it kind of seems desperate to start threatening customers at this point. I really like Vonage but I wonder if this is going to go down as one of the worst ipo's ever. Time will tell.


gobi said...

Analysts fear that customers will defect from Vonage if forced to fulfill their ipo pledges. This is turning out to be a lose-lose situation for Vonage. Personally, I think Vonage should swallow the loss. With customers threatening to leave, it will be harder for Vonage to become profitable, if ever.

paulwk said...

I agree, there's nothing like pissing off your customers if you are trying to put yourself out of business. Take the hit and focus on turning a profit.