How one company is quietly buying up the Internet

Article Abstract:

WorldCom's recent moves of acquiring CompuServe's high speed networking division for $1.2 billion and arranging a transaction for America Online's (AOL) ANS Communications have cemented its position as an Internet giant. The two deals follow WorldCom's 1996 purchase of local phone company MFS Communications, which owned large Internet 'backbone' operator UUNet Technologies. WorldCom Pres and CEO Bernard J. Ebbers attributes much of the recent deals to rising executive star John Sidgmore. The pres and CEO of UUNet, Sidgmore also holds COO and vice chmn positions at WorldCom. Months of negotiations by Sidgmore culminated with the AOL transaction. UUNet, which already has a deal with Microsoft's Microsoft Network, now has arrangements with the two largest on-line services. WorldCom's nearly 50 acquisitions since the mid-1980s resemble the development of AT&T in the 1800s. UUNet's revenue has leaped from $6 million in 1994, when Sidgmore joined the company, to more than $250 million.

On-Line Information Services, Videotex & Teletext, Telegraph & other communications, Management, Internet service providers, Company acquisition/merger, Internet services, Communications industry, Internet service provider, Company Business Management

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WorldCom, MCI probe is widened

Article Abstract:

The Justice Department deepened its investigation of WorldCom's proposed $37 billion acquisition of MCI, indicating potential antitrust problems for the deal. The government is studying the WorldCom-MCI domination of Internet services, according to documents and people whom the investigation has interviewed. Approval of the deal would enable the two companies to control more than 50% of Internet traffic through the international data network's backbone. Outside experts have been hired by the Justice Department to examine the case. The government also has submitted 13-page civil subpoenas, or civil investigative demands, to WorldCom and MCI competitors in Internet backbone traffic. Among the rivals are GTE, IBM, Sprint and PSINet. The Justice Department's second formal request for information to WorldCom and MCI frequently signals delay and further investigation into a deal.

Telecommunications regulations, United States. Department of Justice, Government communications regulation, Market domination, Market share, Litigation, Lawsuit/litigation

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MCI meets with the EU on assets sale

Article Abstract:

MCI now is willing to divest its entire Internet operation to win European Union regulatory approval of its $37 billion acquisition of MCI, according to executive insiders. A new MCI move would consist of selling its 3,000 corporate accounts and several hundred thousand consumer Internet accounts, the executives said. MCI and WorldCom executives presented the offer in a Jun 12, 1998, meeting with EU antitrust advisers as a deadline approaches. The advisers have objected to the proposed merger on antitrust grounds, but insiders said an understanding by Jun 17 could revise its recommendation before a Jun 19 meeting of member nations's competition chiefs. Potential suitors include Cable & Wireless, which recently acquired MCI's networks, British Telecommunications, Williams and AT&T. MCI's Internet operation totals $320 million in annual revenue.

Planning, Company legal issue, Company business planning

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