Less two years into the hype cycle, and the VoIP services are going through a shakeout, indicating that there is little or no room for tiny-tots, especially the ones with a dubious claim to fame. TheGlobe, which tried its best to hype-up its GloPhone/VoiceGlo service is looking to exit the VoIP business. Things have not been going too well for the company which was hyping its GloPhone for most of 2004, especially its partnership with another sinker, Friendster. In more recent times it has been sued by Sprint-Nextel for patent infringement.
The company which claims 4.8 million registered users, has hired Kaufman Brothers as investment advisors. The company trades on the OTC Bulletin Board, for about 42 cents a share. In the quarter ending Sept 30, 2005, It had $48,341 in VoIP revenues, but it spent nearly $1.7 million to get those revenues.
Previously we saw the big ticket exit of Skype that sold out to eBay for $2.6 billion ($4.1 billion if you took into account the earnouts), Yahoo bought DialPad, and Microsoft bought Teleo. Vonage is said to be shopping itself, looking for a buyer even as it tries to complete an IPO.