10414459
join:2007-04-23
Key West, FL
1 edit | reply to pende_tim
Re: SunRocket Days are OVER!
Did you read the post? Brendan would be out of his mind to buy SunRocket. The VC's are trapped, they can sell but to whom?
They have invested 100 million dollars in SunRocket and their only assets are the customer base with its recurring cash flow and equipment that is worth maybe 10 cents on the dollar.
They should enter into a management contract with ViaTalk together with incentive equity options. Heads Brendan wins, tails Brendan wins. Game over. |
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pende_tim
Premium
join:2004-01-04
Andover, NJ
 ·ProLog
 ·ViaTalk
 ·Verizon Online DSL
| ??? I think that we are in violent agreement here.
I said Brendan should not buy SR but instead market to the old customers (such as xx% off for any Sunrocket customer who signs up as a new ViaTalk customer). These folks would be his paying customers, as new sign ups, with the positive cashflow associated with the customer.
Why would Brendan want to help out his competition to stay alive by entering into a management consultancy for them?
Tim
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The difference between genius and stupidity is that genius has its limits. |
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guppy_fish
Premium
join:2003-12-09
Lakeland, FL
 ·Verizon FIOS
| reply to 10414459
said by 10414459  :Did you read the post? Brendan would be out of his mind to buy SunRocket. The VC's are trapped, they can sell but to whom? They have invested 100 million dollars in SunRocket and their only assets are the customer base with its recurring cash flow and equipment that is worth maybe 10 cents on the dollar. They should enter into a management contract with ViaTalk together with incentive equity options. Heads Brendan wins, tails Brendan wins. Game over. I have worked in a startup ( very successful ) and have know VC's personally. VC's are the very top of the heap in business savvy and fully understand the risk rewards involved and it is almost ALWAYS OPM ( other peoples money ). VC's are happy with a 1 out of 3 or 4 hit ratio as when they get a hit on a business they invest in its a 10x type payback.
VC's will just shrug their shoulders, write it off and not even give it another thought. They are fully protected legally to what ever there investment was.
No one is going to save SR ... is done, stick a fork in it. This thread reads like a message board on a stock that's tanking when the rumors of BK get out to the public.
You see the exact same posts over and over again. Someone will save us, they wouldn't do that, I'll tell the FCC, the guys and gals in Washington will save us ... this is just a failed business, nothing more nothing less.
Since they never went public like Vonage, we will never know what happened, but since it was VC controlled you can bet it wasn't due to extravagant waste on the expense side of the equation, it was the revenue side didn't support the business model.
As other have posted some very good analysis of SR expense side, I have a hunch, a large part of the customers used the international calling and that with a small percentage of the user could wipe out the cash on hand before it was even known to management. |
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