According to BusinessWeek's Justin Hibbard, Vonage is poised to raise another US$100-million. The deal would value the company at US$980- million - which seems about right given based on 8x8 Inc.'s market capitalization, which has dropped by more than 50% this year. The question is why more private equity as opposed to an IPO? Certainly, it's an easier way to raise money, and staying private lets you aggressively grow the business (a.k.a. lose money) without too much shareholder and media scrutiny. Then there's the cost of being public in the Sarbanes-Oxley era - a situation that may be complicated by Vonage CEO Jeff Citron's previous troubles with the SEC.
Vonage's timing is interesting. As Om Malik points out, the new FCC chair Kevin Martin may not be as VOIP-friendly as Michael Powell. Vonage has also had some technical probably, highlighted by a lawsuit in Texas where a girl was unable to call 911 during an armed robbery. As well, you have to know Vonage realizes the VOIP market will become a lot more crowded this year as the cablecos rumble into the game with services that will be carrier-class.
Perhaps Vonage figures it should strike while the iron is hot, which means doing something quickly that doesn't involve marketing and a road show. It reminds me in some ways of Research in Motion, which has shown a knack for raising lots of cash when interest is at a peak