Sinking Vonage Ship Throws Captain Overboard
from the trying-to-turn-it-around dept
Regardless of how Vonage’s legal problems play out, it’s pretty obvious that the company’s short time as a publicly traded entity has been a total disaster. Even before the whole patent infringement mess, the company was hemorrhaging cash. So it’s no surprise then that the company has announced the departure of its CEO, Mitch Snyder, who will be replaced by founder Jeff Citron on an interim basis. The company says that Snyder resigned, although that almost certainly means he was fired, given how abrupt the move was. Already, Citron has announced plans to slash rates and cut marketing spending, while promising investors and customers that the company is pursuing a technological workaround so as to avoid infringing on Verizon’s patents. All of these things are good, although it’s not clear that any of it will be enough, as the company faces stiff competition and an inexorable trend towards free voice communications. The other interesting angle to this executive switch has to do with Citron’s earlier settlement with the SEC relating to his former company, Datek. The widely believed, though unconfirmed, rumor is that Citron is enjoined from running a public company, which is why he had to give up the CEO job before Vonage became public. The fact that he has been named CEO, but only on an interim basis while the company searches for someone new, doesn’t really do much to clarify this question.