Sign in Subscribe
Transportation equipment industry

Telecommunications Giant WorldCom to Acquire Intermedia and Digex for $3 Billion

Strategic Insights

— 1 min read

Telecommunications giant WorldCom Inc. has made a major move in the high-tech industry by agreeing to pay $3 billion in stock to acquire Intermedia Communications Inc. and a controlling stake in Digex Inc. This acquisition positions WorldCom as a major player in the rapidly growing industry of hosting Web sites for other companies on powerful computers located at centralized data centers. Intermedia, based in Tampa, Florida, is one of the largest independent operators of voice and data networks in the country, and WorldCom's UUNet division already holds a significant presence in this market.

Key Takeaways:

  • WorldCom Inc. will pay $3 billion in stock to acquire Intermedia Communications Inc. and a controlling stake in Digex Inc.
  • Intermedia, based in Tampa, Florida, is one of the largest independent operators of voice and data networks in the country.
  • The acquisition positions WorldCom as a major player in the industry of hosting Web sites for other companies on powerful computers located at centralized data centers.
  • Digex is a leader in this fast-growing industry, specializing in directing online traffic, delivering Internet content and e-mail, and conducting secure transactions with consumers or other businesses.
  • Existing shareholders will retain their current holdings in Intermedia and Digex after the acquisition.
  • The deal marks a significant expansion of WorldCom's presence in the high-tech industry.
  • Intermedia's Intermedia WebGuard system, a network management and security product, will continue to be supported and developed by WorldCom.

Statistics:

  • The acquisition has a total value of $3 billion.
  • Intermedia Communications Inc. is one of the largest independent operators of voice and data networks in the country.
  • Digex is a leader in the industry of hosting Web sites for other companies on powerful computers located at centralized data centers.
  • 6.5 million defected Firestone tires are currently being recalled, and most are on Ford vehicles, including the popular Ford Explorer.
  • The bill proposed by Senate Finance Committee Chairman William Roth would raise annual contribution limits to 401(k) plans from $10,500 to $15,000.

Sources:

  • "WorldCom to buy 2 big high-tech players," by FROM STAFF AND WIRE REPORTS in the Jackson Clarion-Ledger.
  • "Outside experts to probe faulty Firestones," by FROM WIRE REPORTS in the Jackson Clarion-Ledger.
  • "Roth proposes 401(k) bill like IRA plan," by FROM WIRE REPORTS in the Jackson Clarion-Ledger.

Read more