 | |
| Founded | 1997; 28 years ago (1997) |
|---|---|
| Founder | Michael W. Malaga |
| Defunct | 2001; 24 years ago (2001) |
| Fate | Bankruptcy, assets acquired by AT&T |
| Headquarters | California |
| Key people | Herman Bluestein (Chief Development Officer) |
| Number of employees | 506 (1999) |
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.
History
The company was founded in 1997 by Michael W. Malaga and 5 other former executives of Metropolitan Fiber Systems.
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. Malaga, then 34 years old, was worth $300 million on paper.
In September 2000, Verizon agreed to acquire a 55% interest in the company and merge the companies' DSL businesses.
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. After the earnings restatement, Verizon terminated its acquisition agreement, claiming that a material adverse change had occurred. Northpoint sued Verizon to force it to complete the transaction. The lawsuit was settled out of court in July 2002, with Verizon agreeing to pay $175 million to Northpoint. NorthPoint stated that "it would cut its workforce by 19%, or 248 jobs, to lower expenses after the collapse of its merger with Verizon."
Bankruptcy
In January 2001, NorthPoint filed for bankruptcy. Some internet service providers, which faced a disruption in service, blamed the banks for failing to work out a deal to save the company. In March 2001, AT&T Corporation acquired the assets of NorthPoint for $135 million in a liquidation.
References
- "NORTHPOINT COMMUNICATIONS GROUP INC (NPNT) IPO". NASDAQ.
- ^ Sinton, Peter (May 12, 1999). "The Cash Just Keeps Coming / NorthPoint founder stays grounded". San Francisco Chronicle.
- Vrana, Deborah (May 6, 1999). "This IPO Goes to Show: 'Dot-com' Is No Magic Bullet". Los Angeles Times.
- ^ SCHIESEL, SETH (November 30, 2000). "Verizon Abandons NorthPoint Deal". The New York Times.
- Young, Shawn (November 21, 2000). "NorthPoint Restates Earnings; Loss Could Affect Verizon Deal". The Wall Street Journal.
- Lais, Sami (November 30, 2000). "Verizon, NorthPoint in heated dispute over DSL merger deal". Computerworld.
- "Verizon Agrees to Settle NorthPoint Merger Suits". Los Angeles Times. Bloomberg News. July 24, 2002.
- Staff, T. S. C. (7 December 2000). "NorthPoint Communications Unmoved by Layoffs". TheStreet. Retrieved 2020-04-28.
- "NorthPoint files for Chapter 11". American City Business Journals. January 17, 2001.
- Young, Shawn (January 17, 2001). "NorthPoint Communications Files For Chapter 11 Creditor Protection". The Wall Street Journal.
- Weiss, Todd R. (January 17, 2001). "NorthPoint files for Chapter 11 protection". Computerworld.
- Wagner, Jim (March 29, 2001). "ISPs React To NorthPoint's Imminent Shutdown". QuinStreet.
- Young, Shawn; Solomon, Deborah (March 23, 2001). "AT&T to Acquire Most Assets Of NorthPoint Communications". The Wall Street Journal.
- 1997 establishments in California
- 1999 initial public offerings
- Defunct companies based in the San Francisco Bay Area
- Defunct telecommunications companies of the United States
- Defunct networking companies
- Dot-com bubble
- AT&T subsidiaries
- Internet service providers of the United States
- The Carlyle Group companies