There are the beginnings of some buyout talks going on today. Supposedly, Sprint and Vonage have a deal on the table that may include a buyout by Sprint Nextel. It seems to hinge around the April 24th ruling on whether Vonage can continue signing up customers or not because of the Verizon patent suit.
Obviously, if the ruling says that they can’t until after the patent is fixed, it would mean that Vonage is pretty much dead in the water and suddenly becomes perfect for buyout. Sprint or Verizon buys them up on the cheap, starts running the company like it should have been and maybe even make a bit of money off of them.
If, on the other hand, the ruling continues the stay it would mean that Vonage is safe for a little while longer. They still have to find a way around the Verizon patent problems. If they can do that, maybe the buyout goes away and they continue with the budgetary restructuring that they are currently trying to accomplish.
I’m pretty sure that there are buyout talks going on. It makes sense. Either Sprint or Verizon would have reasons for buying Vonage up and trying to turn it around. Verizon wouldn’t even have to worry about too much as they already own some of the patents. 😉 Of course, so does Sprint so it really is just a horse apiece.
Either way, there might be some happy Vonage shareholders in a few months. Jeff Citron wasn’t so stupid to keep buying up the companies stock was he? Of course, he was buying at $6, so they’ve got to get a pretty good cash premium or a really good stock exchange to make it worth his while.
Technorati Tags: vonage, sprint, sprint nextel, verizon, buyout
About Shane Ede
yea… i hope the value of my shares go up as well. lol least i was smart enough to keep a broad portfolio.
I hear the group that bought alltel is looking at buying sprint/nextel. Any solid rumors out there?