Hide Techdirt is off for the long weekend! We'll be back with our regular posts tomorrow.

Vonage Offers IPO Money-Back Guarantee

from the efficient-use-of-proceeds dept

Vonage’s IPO continues to be a mess. With customers raising some questions over the share allocation process, reports today say that Vonage indemnified the offering’s underwriters, meaning that if customers refuse to pay for shares they were awarded, it will cover the cost. It’s an odd move, but could offer an out to Vonage customers that got in on the IPO, and now regret it. This illustrates one down side to Vonage’s attempt to turn customers in to shareholders: since it solicitied the purchases, rather than letting interested parties go out on their own and get them, it essentially has to deal with the fallout as an extension of its customer-service operations. Irritating customers by luring them into buying a stock that’s tanked isn’t a good way to keep them happy, even if it was the customers’ own unrealistic expectations that’s causing the problems. Of course, any move that would let some buyers weasel out of their commitments will attract the class-action lawyers, an inevitable outcome, really, to this sorry IPO.

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Vonage Offers IPO Money-Back Guarantee”

Subscribe: RSS Leave a comment
Anonymous Coward says:

I used to be a vonage customer. . .

and everything was great for months until something went wrong, then it was a nightmare. I was actually loyal enough to give them two months to fix the problem, and I can’t even begin to tell you the extreme level of incompetence and lack of communication that occurred between these people. Hours upon hours upon hours on the phone, holding to be transferred, only to find out that there were no records of the hours of converations and trouble shooting that had already been undertaken.

This company will never, ever, ever succeed in it’s current form. The telcos are virtually price competitive with traditional landline service, are getting close with the online component, and even offer comparable VoIP offerings.

I will truly enjoy watching this company trickle away to nothing until one of the telco’s buys them for pennies on the dollar.

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...