This entry was posted on Wednesday, May 14th, 2008 at 12:01 am and is filed under Fiber Telecom Texas Hold'em Tournament, Telecom Boom, Meltdown and Resurgence. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
This came from a bearonbusiness reader who added color to yesterday’s XO Texas hold’me post. I thought it would be interesting to share. (I did not look into the accuracy.)
Looking to get into the Internet business, XO bought Concentric for about $1 billion. In return, XO got a leased OC-3 Internet backbone, a number of POPs located in the back of Payless Shoe stores and an eroding base of medium to small sized hosting customers. The network was replaced via Level 3. Ultimately they retained some of the smart folks who have been leveraging patented hosting technologies. Largest customer is Microsoft’s B-central. At the end of the day they paid too much and it didn’t add to the brand nor did it deliver meaningful revenue. It did make a lot of the Concentric execs very rich though.
Now this was a classic telecom bubble story.
To the reader who sent this–thanks for the email.
Posted by Dan Caruso (May 14, 2008)
