NorthPoint Communications

NorthPoint Communications Group, Inc. was a competitive local exchange carrier focused on data transmission via digital subscriber lines. The company had relationships with Microsoft, Tandy Corporation, Intel, Verio, Cable & Wireless, Frontier Corporation, Concentric Network, ICG Communications, Enron, Network Plus, and Netopia. The company had investments from The Carlyle Group, Accel Partners, Benchmark, and Greylock Partners.<ref>Template:Cite web</ref>

History

The company was founded in 1997 by Michael W. Malaga and 5 other former executives of Metropolitan Fiber Systems.<ref name=cash>Template:Cite news</ref>

On May 5, 1999, during the dot-com bubble, the company became a public company via an initial public offering in which it sold 15 million shares at $24 per share.<ref>Template:Cite news</ref> Malaga, then 34 years old, was worth $300 million on paper.<ref name=cash/>

In September 2000, Verizon agreed to acquire a 55% interest in the company and merge the companies' DSL businesses.<ref name=abandons/>

In November 2000, as its customers failed to pay their bills, NorthPoint restated downwards its financial performance for the third quarter of 2000, lowering revenue from $30 million to $24 million.<ref>Template:Cite news</ref><ref name=abandons/> After the earnings restatement, Verizon terminated its acquisition agreement, claiming that a material adverse change had occurred.<ref name=abandons>Template:Cite news</ref> Northpoint sued Verizon to force it to complete the transaction.<ref>Template:Cite news</ref> The lawsuit was settled out of court in July 2002, with Verizon agreeing to pay $175 million to Northpoint.<ref>Template:Cite news</ref> NorthPoint stated that "it would cut its workforce by 19%, or 248 jobs, to lower expenses after the collapse of its merger with Verizon."<ref>Template:Cite web</ref>

Bankruptcy

In January 2001, NorthPoint filed for bankruptcy.<ref>Template:Cite news</ref><ref>Template:Cite news</ref><ref>Template:Cite news</ref> Some internet service providers, which faced a disruption in service, blamed the banks for failing to work out a deal to save the company.<ref>Template:Cite news</ref> In March 2001, AT&T Corporation acquired the assets of NorthPoint for $135 million in a liquidation.<ref>Template:Cite news</ref>

External links

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