Sprint, Vonage Strike $80 Million Patent Deal > Shares jump 40%?

reply to KrK

Re: Shares jump 40%?

said by KrK:

Hmm. I need to buy a bunch of Vonage shares! ... Yesterday.



I don't really think having to pay this kinda money is good news, however, but I guess a lot of people thought Vonage was going to fold up.

I think they will simply hold pricing steady, and just pay the fine. I don't read a going forward fee, but even if the one time royalty payment was a going forward fee, they might want to pay it over time.

If I were S, I would want the money from VG now though.

At 175m, now 300m or so market cap, for 2.4m subs, that is about 120$ a sub for someone to buy. About what people have typically paid. I think the company should be valued at about 500mm, which would make this a 3.00 stock?

I'm not jumping back in on this for a while though. I like it better in the .9 range