Vonages Uses VoIP Spam To Push IPO On Customers
from the that-doesn't-look-too-good dept
Before this week, there was already substantial doubt about Vonage's IPO prospects. The company's s-1 did not look promising; profitability will be distant, if it comes at all. Then, yesterday it announced that it was giving its customers a chance to buy into the IPO. Though they made it seem like they just wanted to give back to the customers who have helped them get where they are, it was seen as a real sign that there is lack of institutional interest in the company's IPO. Today, the story gets even worse, as they appear to be engaging in the first case of VoIP stock spam as a way of pushing their stock on customers. The company sent out mass voicemails (and emails) encouraging customers to participate in the stock purchase plan. Considering the legitimate fears that people have about an explosion in VoIP spam, and the inevitable comparisons to penny-stock spam scams, the move makes the company look like it's not ready for the big leagues. The action could also prompt some unwanted SEC scrutiny, which already has a beef against founder Jeffrey Citron relating to, yes, a stock scam. Furthermore, they risk alienating their customers who have more alternatives every day. Before a company goes public, it needs to convince investors that they're strong and stable; if this deal is going to go through they have a lot of explaining to do.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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Vonage
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More investigation
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vonage IPO
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the REAL INVESTMENT in all this
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SPAM
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google
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Lots of other reasons the IPO might be soft
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Didn't mind..
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Spam???
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Vonages Uses VoIP Spam To Push IPO On Customers
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short the stock and don't touch the ipo
no longer a vonage customer
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Got the email
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Look, it's Jeffrey Citron, nice to see you read....
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off the deep end
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Vonage has innovation going for it though, and it will be interesting to see them try to really be a player by adding additional services that make them attractive to consumers.
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I received the E-mail offer, as well as the voice mail.
Forget the fact that "pre-purchasing" shares is a bad idea in general, but I don't think this stock will hold the IPO value -- and I believe that they feel the same way.
It is obvious they are trying to lock investors into the initial offering price because they don't see the price holding on the open market. To pre-purchase shares, they require that you use/open an account that ultimately prevents you from selling your shares for several days after public trading begins.
It's a brilliant idea, but experienced investors will see right through this one.
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amusing
Anyways, Vonage just started offering free calls to Italy, Ireland, UK, Spain, and France. No price increase. Hate Vonage all you want, I use it and it rocks. They're breaking the cabal of unnecessarily high phone prices.
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I Agree
Actually, I agree with J.R... I love Vonage too, but rewarding customers means discounts and/or service upgrades, not "we want to thank you by taking more of your money in a different way".
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Not Necessarily
@#7, Did you get the email? I certainly didn't get the feeling from it that I was being pressured into anything. Also, his internet went 30% slower? What speed connection?
Check this out: http://www.voip-info.org/wiki/index.php?page=Bandwidth+consumption
Don't forget, if you are both talking at the same time, the bandwidth figures are times 2. Also, when you saturate your outgoing bandwith, your incoming drops to crap speeds.
@#8: India? Are you kidding me? I've talked to Vonage a few times, adding lines, removing a softphone, etc, and every time I have called I have talked to someone in New Jersey. The longest wait time I had was about 10 minutes, and that was after I had already spoken to someone, and was being forwarded to someone responsible for provisioning of the ATA adapter.
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Dubious
However, what is not OK are the numbers. With only USD126 M on the bank, how are we to invest in a company that crunches USD 176M/Year only in marketting expenses, with total loss of >189M in just nine months.
I would love to invest few G, but I am dubious.
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adding to previous post
If it is working, it is great. Works fine. If for any reason, you have any issue, fixing that problem with vonage is nightmare. Worst customer service. YES, they send you to half-trained tech in India. And keep you waiting for 45 minutes to 1 hour.
Still... willing to invest ... I must be a fool!
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Re: short the stock and don't touch the ipo
You wait forever and then talk to someone who doesnt speak the same English language that I do.
I could not explain in plain English what I wanted to have done, so I cancelled my service.
When I cancelled they were not kind enough to remind me of the 40 dollar fee for early termination that would hit my bank account that day.
How nice of them.
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Shares allocated after the fact?
Dropping 25% in two days is bad enough, but now it seems that some investors were actually told they had been allocated 0 shares, just to find out after the drop that they got shares after all: Vonage Allocating Shares After The Fact?
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Re: amusing
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Re: voip solutions
U Guys Rock!
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vonage is killign itself before anyoonen else can
How this is even legal is beyond me, I guess thats expected from pussy America, whio just sucks the cock of any corporation, and glady swallows.
also, the cancelation process is worse then AOLs
Fuck Vonage. I hope they burn.
Another thing I do not think shoudl eb legal is arbitrailrily sticking in your terms of service that you cannot be sued, WTF fuck America for even allowign that.
HEY, WE GOOFED AND NOW WE SUCK BUT DON'T WANT TO BE SUED FOR OUR MOB PRACTICES, SO LETS STICK IN THE TOS RANDOMLY A CLAUSE THAt says we can do whatever the fuck we want and not get in trouble or have to be responsible.
FUCK THAT, that clause should be illegal in any tos.
Im startign to hate america, the coutnry i once loved, more an dmore everyday.
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penny stock
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