The Other Victims Of The Vonage Ruling
Vonage (VG) has been a disaster of a public stock. It came public at $17 and has traded down to $3.37 on business woes and a nasty patent dispute with Verizon. Today a judge ruled that Vonage must stop acquiring new customers until the patent dispute is resolved. I wonder what that will do to the stock when the market opens on Monday.
But there are other victims of this ruling. Vonage is one of the largest advertisers on the Internet. I would guess they are in the top 10 for sure. [CoryS says in the comments that they are #12 and spent $7mm online in January]
I assume that they will have to stop their advertising in light of this suit. How much lost revenue does that mean for Yahoo! (YHOO), AOL/Ad.com, MSN, and others?
Probably not enough to make a dent in their stocks, but certainly enough to get them scrambling to make it up somewhere else.