Rumor Mill:Banks encourage Vonage to sell

According to a report in the Financial Times, UBS and Deutsche Bank are encouraging Vonage to consider a sale as a parallel process to its planned initial public offering of stock. Vonage chose the banks to underwrite its stock market listing. The company plans to raise $600 million through its IPO. Analysts estimate that Vonage could sell for between $1 billion and $1.5 billion. The VoIP startup did not comment on the rumored sale.

The parallel process could be an indication that the banks are worried that Vonage's numbers cannot sustain long-term market value. However, eBay's recent buyout of Skype has some insiders saying the market is riper for VoIP acquisitions than for IPOs. Wall Street bankers have suggested that Verizon, Time Warner, or Comcast would make great buyers for Vonage.

For more on the rumored Vonage sale:
- see this article in the Financial Times

FREE DAILY NEWSLETTER

Like this story? Subscribe to FierceWireless!

The Wireless industry is an ever-changing world where big ideas come along daily. Our subscribers rely on FierceWireless as their must-read source for the latest news, analysis and data on this increasingly competitive marketplace. Sign up today to get wireless news and updates delivered to your inbox and read on the go.

Suggested Articles

AT&T has shifted its Cricket prepaid brand to a 100% authorized retailer model, according to Wave7 Research.

The FCC decided to extend the timeline for responding to Huawei's application for review until December 11.

All operators are trying to understand the intersection between their networks and hyperscale networks. But who gets the lion's share of the revenue?