Vonage – forget IPO think BuyOut

Vonage, might be better off prepping itself for a sale, instead of an IPO. Financial Times reports that VoIP upstart’s two lead underwriters – UBS and Deutsche Bank – have been secretly telling the company that a “parallel process” might be a better option. Parallel process, by the way is a fancy way of saying – sell baby sell. As reported earlier, the company is looking to raise $600 million in an initial public offering. For some odd reason, the value being placed on the company is between $1 and $1.5 billion. That’s for 1 million customers. Or between $1000-to-$1500 a customer. Which translates to about 40-to-60 months of revenues. Given that there are some who are ready to offer ludicrous amounts of cash for Skype, well why not? The report says anyone from Verizon to Comcast might be keen on something like this. I am not sure, why they would need to do that, but we all know – Wall Street is full of carny-folks who can sell ice in Alaska. Hey maybe they call Rupert Murdoch, who passed on Skype, but plans to have VoIP within weeks.

Previously: Holy Smokes, Vonage goes for an IPO