Ericsson Takes Second Vonage Writedown in a Year as Value Sinks
- Swedish company to record $1.1 billion non-cash impairment
- Ericsson still aims to leverage Vonage with network API plan
The Ericsson headquarters in Stockholm.
Photographer: Erik Flyg/BloombergThis article is for subscribers only.
Ericsson AB warned investors that it would take an 11.4 billion Swedish kronor ($1.1 billion) non-cash impairment in the second quarter after Vonage Holdings Corp.’s performance deteriorated, the second major writedown on the asset in less than a year.
The Swedish telecommunications network company has “reassessed certain growth assumptions” after the market for its services worsened and it redirected its investments, Ericsson said in a statement late on Wednesday.