<% @ Language=VBScript %>WSJ: Vonage Preps IPO
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WSJ: Vonage Preps IPO

September 29, 2005

The Wall Street Journal reported today that Vonage Holdings Corp. has selected four banks to manage its initial public offering and is preparing the requisite paperwork with the Securities and Exchange Commission.�

Vonage, according to the WSJ, anticipates that the IPO will raise $600 million.� The company had already raised $408 million in venture capital rounds led by Bain Capital, with strong participation from existing investors.

With the company's recent announcement that it became the first residential VoIP provider with one million lines in service in North America, the timing�is right to cash in.� The major question, of course, is how long can Vonage maintain its run?

When rumblings of the IPO first spread in late August, Rich Tehrani wrote in a blog entry that Vonage would have to expand its services (offering TV and wireless) and its reach internationally to thrive as a stand-alone company in the long run.

Vonage, however, faces fierce competition from incumbent telephone companies and MSOs - not to mention the Googles, Yahoos, eBays and Skypes of the world - that can bundle�voice with data and video services.




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