NY Tel
Premium
join:2004-04-09
Smithtown, NY | reply to 10414459
Re: SunRocket Days are OVER!
I'm not disputing your advice but your persistence in arguing the merits of the possibilities goes back to my original observation.
Calvin Klein has a fragrance named after it. |
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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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10414459
join:2007-04-23
Key West, FL
| reply to NY Tel
NY Tel Guy. This is very simple. It is not necessary for ANYONE who would enter into a management contract with SunRocket to assume their debt and it is mind boggling that anyone would assume otherwise. No one is putting words into Brendan's mouth, he can speak for himself.
Currently, it is my understanding that Sherwood Partners is running the show at SunRocket on behalf of Board, I am sure that they will consider every opportunity to maximize value for the VC's. |
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NY Tel
Premium
join:2004-04-09
Smithtown, NY | reply to 10414459
Understood but if the business owner says no then your discussions and suggestions are moot since they'll never happen. |
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10414459
join:2007-04-23
Key West, FL
| reply to NY Tel
The reason is very simple. I am a retired investment banker. Money is my business, I like it, you might say that I collect it.
I did not retire at 52 by being nice, I am an opportunist.
I know exactly what is going through the VC's minds and I know what I would do it I were in a similar situation.
Personally, I have no dog in this game therefore, I could care less if the VC's or Brendan fail to seize the opportunity.
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no1g8r
join:2005-05-05
Lawrenceville, GA
| reply to myguess
said by myguess :
Look at things this way.... Vonage has gone on record as having said they've been paying approx. $400 per customer they aquire. Even at half that, that makes 200k customers worth 40 mil. If you guessed that they needed to provide 12 months of service before renewal to each of those customers, and ballpark a cost of $10 a pop a month which would be high, they still have value come renewal time.
Please refrain from using reason here  . Most folks want to believe that the Sunrocket customer base is worth $0,when in fact businesses even pay for customer lists of other similar businesses every day,not to mention the possibility of assuming those customers in hopes of retaining them at renewal time. |
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pende_tim
Premium
join:2004-01-04
Andover, NJ
 ·ProLog
 ·ViaTalk
 ·Verizon Online DSL
| reply to 10414459
??? 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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Tweak
Premium
join:2002-06-08
Oklahoma City, OK | reply to NY Tel
I think he is praying for a miracle were you the person who prepaid till 2011?? |
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NY Tel
Premium
join:2004-04-09
Smithtown, NY
·VOIPo
| reply to 10414459
said by 10414459 :My God man. Why in the h.... would ViaTalk have to assume the debt? Brendan is a businessman, he knows exactly how to cut a deal. Could you please refrain from putting words into Brendan's mouth and let him speak for himself.
Your pure conjecture is bordering on the ridiculous.
Please no flame intended here. |
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10414459
join:2007-04-23
Key West, FL | reply to Tweak
My God man. Why in the h.... would ViaTalk have to assume the debt? Brendan is a businessman, he knows exactly how to cut a deal. |
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VTBrendan
Viatalk
Premium,VIP
join:2005-06-27
Clifton Park, NY
| reply to NY Tel
said by NY Tel :Can I ask why you are acting like you have a ringdown circuit to Brendan's kitchen? He already said he had no plans and your post appear as if you are obsessed with venture capitalists having a meeting on Brendan. Thats a good question.
-Brendan |
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NY Tel
Premium
join:2004-04-09
Smithtown, NY | reply to 10414459
Can I ask why you are acting like you have a ringdown circuit to Brendan's kitchen?
He already said he had no plans and your post appear as if you are obsessed with venture capitalists having a meeting on Brendan. |
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myguess
| reply to Tweak
Look at things this way.... Vonage has gone on record as having said they've been paying approx. $400 per customer they aquire. Even at half that, that makes 200k customers worth 40 mil. If you guessed that they needed to provide 12 months of service before renewal to each of those customers, and ballpark a cost of $10 a pop a month which would be high, they still have value come renewal time. |
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Tweak
Premium
join:2002-06-08
Oklahoma City, OK | reply to pende_tim
I said in my post I doubt he would want to assume the debt!! |
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10414459
join:2007-04-23
Key West, FL
1 edit | reply to pende_tim
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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