The proposed no-cash Vonage-Nortel settlement (CD Jan 2 p10) is a...
The proposed no-cash Vonage-Nortel settlement (CD Jan 2 p10) is a “non-event” for Vonage stock, Stanford Group’s Clayton Moran said. No one expected a “significant monetary settlement,” and it was unlikely Vonage would come out the loser, told us.…
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
Assuming Vonage and Nortel finalize the deal, Vonage will have settled all patent suits brought against it. That “legal stability” is good, but Vonage must now focus on the “financial side,” Stifel Nicolaus analyst Rebecca Arbogast said in an interview. Vonage must pay off $250 million in debt by the end of 2008 but has less than $150 million in working capital, most of which is needed for business costs, Moran said. Vonage should come up with a plan to address the funding gap in the next three to six months, he said.