Vonage, Selling Itself?

It has been almost two months since Vonage filed its S-1 indicating that it was interested in going public and raising around $250 million from the public markets.
And it has been two months since it updated that document, which to Wall Street insiders means that the company might actually be looking to shop itself to another player. “It could be that Vonage’s underwriters have tested the waters and may see that an IPO may not raise the necessary money for Vonage to continue deploying its marketing plan,” David Menlow, president of IPOfiancial.com tells CNN/Money.
Cash is going out like crazy, competition is rising – tough times, but you already knew that. “I think they are looking for a buyer. Going public is something in their back pocket,” Greg Gorbatenko, an analyst with Jackson Securities tells CNN/Money. Who is going to buy them? Isn’t that the billion dollar question? Gorbatenko suggests Qwest, but I find it hard to buy into that. I think like the IPO, finding a buyer would also be a big challenge for the company.
All GigaOM stories on Vonage