Vonage to Shuffle Chief Executives?


Source: Reuters

Vonage Holdings (NYSE: VG) will name a new chief executive as early as next week, The Wall Street Journal said, citing people familiar with the matter.

The Web-based phone company said on Thursday it has a letter of commitment from Silver Point Finance to provide up to $215 million in private debt financing, after months of negotiations.

Jeffrey Citron, Vonage’s chairman and interim chief executive, plans to let someone else manage day-to-day operations, though he will remain involved with the company, the paper said.

The possible change in leadership comes a little more than a year after CEO Mike Snyder was removed due to disappointing results.

Vonage was a pioneer in selling Web-based phone services to consumers looking for a cheaper alternative to traditional landline services.

But it has been bleeding red ink since its start, and has faced growing competition from Skype, a unit of online auction company eBay (NASDAQ: EBAY), and cable service providers’ voice services.

The VoIP provider survived various legal struggles over the last year, including a loss in a patent dispute with Verizon and a threat to shut down the service.

Vonage could not be immediately reached for comment.

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