Vonage Jumps 123% on Sprint Patent Suit Settlement

Shares of internet telephony provider Vonage jumped 123% Monday on news the company had settled its patent lawsuit with Sprint, agreeing to pay the company $80 million in past and forward licensing fees. It marked the largest single-day gain for shares of the struggling telecom company since its IPO last year. Through the deal, Vonage will license 100 internet patents from Sprint, allowing it to connect internet and standard calls. Two weeks a go, a U.S. district court ruled in favor of Sprint (full story). Vonage still faces what is considered to be a more dangerous patent infringement suit from Verizon. Its shares are down 80% since its IPO in June of 2006.

Sources: Press Release, Bloomberg, Wall Street Journal, MarketWatch
Commentary: Vonage Rises From The Dead on Sprint Deal • Vonage Loses Another Patent Case, This Time To Sprint • Vonage Loses Patent Case to Sprint; Shares Tank
Stocks/ETFs to watch: VG, S. Competitors: VZ, T. ETFs: WMH, VOX

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Comments

[Carpe Max:]

Vonage shareholders are happy, but Vonage is still not out of the woods yet. They still have a case with Verizon pending. I also read that Sprint and Vonage "entered into a business". Does anyone know what this refers to? I did find some info on the corporate ties between Sprint and Vonage www.newsvisual.com/new... . These probably played a role in the settlement and the "business deal".

2007 Oct 09 07:10 PM