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Prepared and filed by St Ives Financial
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<p align="center"><font size="4" face="serif"><b>UNITED STATES</b></font><br>
<font size="4" face="serif"><b>SECURITIES AND EXCHANGE COMMISSION</b></font><br>
<font size="2" face="serif"><b>Washington, D.C. 20549</b></font></p>
<p align="center"><font size="2" face="serif"><b>_________________</b></font></p>
<p align="center"><font size="2" face="serif"><b><font face="serif" size="5">FORM 8-K</font></b></font></p>
<p align="center"><font size="2" face="serif">CURRENT REPORT </font><br>
<font size="2" face="serif">Pursuant To Section 13 or 15(d)</font><br>
<font size="2" face="serif">of the Securities Exchange Act of 1934</font></p>
<p align="center"><font size="2" face="serif">Date of Report (Date of earliest event reported): <b>February 24, 2006</b></font></p>
<p align="center"><font size="2" face="serif"><b>_________________</b></font></p>
<p align="center"><b><font face="serif" size="5">NET2PHONE, INC.</font></b></p>
<p align="center"><font size="2" face="serif"><b>_________________</b></font></p>
<p align="center"><font size="2" face="serif">(Exact name of registrant as specified in its charter)</font></p>
<p align="center"><font size="2" face="serif"><b>000-26763</b></font><br>
<font size="2" face="serif">(Commission File Number)</font></p>
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    <td width="50%" align="center" valign="top"><font size="2" face="serif"><b>Delaware</b></font></td>
    <td align="center" valign="top"><font size="2" face="serif"><b>22-3559037</b></font></td>
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    <td align="center" valign="top"><font size="2" face="serif">(State or other
    jurisdiction of<br>
    incorporation or organization)    </font></td>
    <td align="center" valign="top"><font size="2" face="serif">(I.R.S. Employer
        Identification
No.)</font></td>
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<p align="center"><font size="2" face="serif"><b>_________________</b></font><font size="2" face="serif">             </font></p>
<p align="center"><font size="2" face="serif"><b>520 Broad Street</b></font><br>
<font size="2" face="serif"><b>Newark, New Jersey 07102</b></font><br>
<font size="2" face="serif">(Address of principal executive offices, with zip code)</font></p>
<p align="center"><font size="2" face="serif"><b>(973) 438-3111<br>
</b></font><font size="2" face="serif">(Registrant&#146;s telephone number, including area code)</font></p>
<p align="left"><font size="2" face="serif"><b>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):</b></font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><img src="emptybox.gif">&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act</b></font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><img src="emptybox.gif">&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act</b></font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><img src="emptybox.gif">&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act</b></font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><img src="emptybox.gif">&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act</b></font></p>
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<p align="left"><font size="2" face="serif"><b>Item 8.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Events.</b></font></p>
<div style="text-indent: 3%">
<p align="left"><font size="2" face="serif">Net2Phone, Inc. (the &#147;Company&#148;)
    is filing this Current Report on Form 8-K to file:</font></p>
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    <td width="3%"><font size="2" face="serif">1.</font></td>
    <td><font size="2" face="serif">the Consent of The Blackstone Group, L.P.
        (&#147;Blackstone&#148;) to the incorporation by reference in the Registration
        Statements (Form S-3 No. 333-125880, Form S-3/A No. 333-56844 (Amendment
        #1), Form S-3/A No. 333-78713 (Amendment #1), Form S-3/A No. 333-110118
        (Amendment #2), Form S-8 No. 333-101734, Form S-8, 333-83670, Form S-8
        No. 333-51248, Form S-8 74354, Form S-8 No. 85945, Form S-8 No. 111403
        and Form S-8 No. 333-124684) (the &#147;Registration Statements&#148;)
        of the references to Blackstone and the inclusion of and references to
        its opinion dated February 16, 2006 as to the fairness, from a financial
        point of view, of the consideration of $2.05 per share to be received
        by holders of the Company&#146;s capital stock (other than IDT Corporation
        and its subsidiaries) in connection with the merger of NTOP Acquisition,
        Inc., a wholly-owned subsidiary of IDT Corporation, with and into the
        Company in the Schedule 14A filed by the Company on February 24, 2006;
    and</font></td>
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    <td width="3%"><font size="2" face="serif">2.</font></td>
    <td><font size="2" face="serif">the Consent of Ernst &amp; Young LLP (&#147;E&amp;Y&#148;)
        to the incorporation by reference in the Registration Statements of its
        reports dated October 10, 2005, with respect to the consolidated financial
        statements and schedule of Net2Phone, Inc., Net2Phone, Inc. management&#146;s
        assessment of the effectiveness of internal control over financial reporting,
        and the effectiveness of internal control over financial reporting of
        Net2Phone, Inc., included in Net2Phone, Inc.&#146;s Annual Report (Form
        10-K) for the year ended July 31, 2005, which is included as an Annex
    to the Schedule 14A filed by Net2Phone, Inc. on February 24, 2006.</font></td>
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<div style="text-indent: 3%">
<p align="left"><font size="2" face="serif">The Consent of The Blackstone Group, L.P. is set forth as Exhibit 23.1.</font></p>
<p align="left"><font size="2" face="serif">The Consent of Ernst &amp; Young LLP
    is set forth as Exhibit 23.2.</font></p>
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<p align="left"><font size="2" face="serif"><b>Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.</b></font></p>
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<font size="2" face="serif">(d)</font></td>
<td>
<font size="2" face="serif"> Exhibits</font></td>
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<font size="2" face="serif">&nbsp;</font></td>
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<font size="2" face="serif">23.1</font></td>
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<font size="2" face="serif">Consent of The Blackstone Group, L.P.</font></td>
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  <td>&nbsp;</td>
  <td> <font size="2" face="serif">23.2</font></td>
  <td> <font size="2" face="serif">Consent of Ernst &amp; Young LLP</font></td>
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<p align="center"><font size="2" face="serif"><b>SIGNATURES</b></font></p>
<div style="text-indent: 3%"><p align="left"><font size="2" face="serif">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>
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    <td colspan="2"><font size="2" face="serif">NET2PHONE, INC.</font></td>
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    <td><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date: February
    24, 2006</font></td>
    <td><font size="2" face="serif">By:</font></td>
    <td><font size="2" face="serif"><u>/s/ GLENN J WILLIAMS</u></font></td>
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    <td>&nbsp;</td>
    <td><font size="2" face="serif">Name:</font></td>
    <td><font size="2" face="serif">Glenn J. Williams</font></td>
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    <td>&nbsp;</td>
    <td><font size="2" face="serif">Title:</font></td>
    <td><font size="2" face="serif">Executive Vice President of Business and<br>
Legal Affairs, General Counsel and<br>
Secretary of the Company</font></td>
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Prepared and filed by St Ives Financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 8-K
CURRENT REPORT
Pursuant To Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
February 24, 2006
_________________
NET2PHONE, INC.
_________________
(Exact name of registrant as specified in its charter)
000-26763
(Commission File Number)
Delaware
22-3559037
(State or other
    jurisdiction of
incorporation or organization)
(I.R.S. Employer
        Identification
No.)
_________________
520 Broad Street
Newark, New Jersey 07102
(Address of principal executive offices, with zip code)
(973) 438-3111
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
Written communications pursuant to Rule 425 under the Securities Act
Soliciting material pursuant to Rule 14a-12 under the Exchange Act
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act
Item 8.01      Other Events.
Net2Phone, Inc. (the "Company")
    is filing this Current Report on Form 8-K to file:
1.
the Consent of The Blackstone Group, L.P.
        ("Blackstone") to the incorporation by reference in the Registration
        Statements (Form S-3 No. 333-125880, Form S-3/A No. 333-56844 (Amendment
        #1), Form S-3/A No. 333-78713 (Amendment #1), Form S-3/A No. 333-110118
        (Amendment #2), Form S-8 No. 333-101734, Form S-8, 333-83670, Form S-8
        No. 333-51248, Form S-8 74354, Form S-8 No. 85945, Form S-8 No. 111403
        and Form S-8 No. 333-124684) (the "Registration Statements")
        of the references to Blackstone and the inclusion of and references to
        its opinion dated February 16, 2006 as to the fairness, from a financial
        point of view, of the consideration of $2.05 per share to be received
        by holders of the Company's capital stock (other than IDT Corporation
        and its subsidiaries) in connection with the merger of NTOP Acquisition,
        Inc., a wholly-owned subsidiary of IDT Corporation, with and into the
        Company in the Schedule 14A filed by the Company on February 24, 2006;
    and
2.
the Consent of Ernst & Young LLP ("E&Y")
        to the incorporation by reference in the Registration Statements of its
        reports dated October 10, 2005, with respect to the consolidated financial
        statements and schedule of Net2Phone, Inc., Net2Phone, Inc. management's
        assessment of the effectiveness of internal control over financial reporting,
        and the effectiveness of internal control over financial reporting of
        Net2Phone, Inc., included in Net2Phone, Inc.'s Annual Report (Form
        10-K) for the year ended July 31, 2005, which is included as an Annex
    to the Schedule 14A filed by Net2Phone, Inc. on February 24, 2006.
The Consent of The Blackstone Group, L.P. is set forth as Exhibit 23.1.
The Consent of Ernst & Young LLP
    is set forth as Exhibit 23.2.
Item 9.01      Financial Statements and Exhibits.
(d)
Exhibits
23.1
Consent of The Blackstone Group, L.P.
23.2
Consent of Ernst & Young LLP
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
NET2PHONE, INC.
Date: February
    24, 2006
By:
/s/ GLENN J WILLIAMS
Name:
Glenn J. Williams
Title:
Executive Vice President of Business and
Legal Affairs, General Counsel and
Secretary of the Company