What We All Forgot About Vonage

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Vonage Was Built To Sell

It is funny how all of the things that have transpired with Vonage over the past year have lead us all to forget that Vonage was a company built for sale. Jeffery Citron, Vonage Co-founder and current CSO, has a past track record of starting a company in an emerging sector, spending big on marketing and advertising to become the market leader and household name, only to dump the company to the highest bidder, leaving controversy and disappointment in the wake.

Vonage is not run by passionate, innovative VoIPnophiles. It hasn’t had that flair since Jeff Pulver left years ago. I feel no pain for Vonage, for as far as I am concerned, the company served it’s purpose - to deliver Jeffery Citron a hefty return on his dollar….and boy did it ever.

I added this over at Phoneboy’s Blog, it helps solidfy my arguement further.

Jeffery was the majority owner of Vonage and is the largest stakeholder. His 41% stake was worth over $500 Million when the company first went public. A paper profit yes, but this is six times his initial investment. While the company has tanked, his $81.5 million investment before Vonage’s IPO, allowed him to acquire 47.67 million common shares at an average of $1.71 each, according to documents filed with the Securities and Exchange Commission. All in total, even with the stock at $3 each right now, he has still doubled his money.