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| ⚫ | '''Verio''' is an ] (ISP) in the ]. Incorporated in 1996 in ], it is currently a wholly owned subsidiary of ] (NTT) Communications, which purchased it in ]. | ||
| {{Primarysources|article|date=May 2007}} | |||
| ⚫ | '''Verio''' is an ] (ISP) in the ]. Incorporated in 1996 in ], it is currently a wholly owned subsidiary of ] (NTT) Communications, which purchased it in ]. |
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| ==History== | ==History== | ||
| Verio was initially composed entirely of smaller companies operating under the Verio brand-name. By the year 2000, Verio had purchased almost fifty small ISPs,<ref> MorganStanley, 11 Aug 1999, pg. 30</ref>. | |||
| Initially, Verio raised funds with which to purchase regional small "mom and pop" ISPs around the United States and ]. It was funded by the principal founders, private investors, NTT, and institutional investors in a private placement raising $250 million dollars. The concept was to "roll up" small ISPs into one large national ISP and achieve ] with a single internet infrastructure, a single branded product line, a unified support structure, and so forth. This type of regional rollup into a national brand is common in many industries, but was the first of its kind on a national scale in the newly evolving ISP industry. | |||
| By the year 2000, Verio had purchased almost fifty small ISPs, most in the U.S. but some in Europe, ranging in price from under a million dollars (USD) to over 100 million dollars per ISP. During this time Verio went public on the ], trading under the symbol VRIO. In early 2000 Verio was sold to NTT at a per-share price of over $60, a total cost slightly exceeding $5 billion. Because NTT is a ]-owned company, foreigners are not allowed to own NTT stock (according to Japanese law) and therefore the buy-out was a 100% cash deal. This was and still remains the largest cash transaction for a high-tech company in United States history. The United States Congress held hearings over the transaction to ensure it did not violate national security concerns, because the Verio ] was at the time one of the top five in the world, carrying a large amount of potentially sensitive data. | |||
| The ] and the ] expressed concern that the Japanese government, which owned 53 percent of NTT at the time, could gain access to classified information should the U.S. government use Verio's network to tap Internet communications during an investigation. To placate these concerns, NTT agreed to form a separate division within the company staffed only by U.S. citizens to handle any work in support of government investigations. As a result, the ] recommended that President Clinton allow the $5.5 billion purchase to proceed. The deal also prompted scrutiny of Japan's openness to foreign telecom competitors. | |||
| Within months of the announced deal, the NASDAQ stock market crashed in the spring of 2000 in the ] burst. The agreed price of around $60 remained and NTT and Verio completed the transaction by the fall of 2000. | |||
| Over the course of the next few years Verio abandoned the lower revenue consumer market and focused primarily on the more lucrative business to business web hosting market. Most of the original infrastructure and employees it had purchased were disbanded or consolidated into a few large centralized data centers. | |||
| Verio continues to operate as a wholly owned subsidiary of NTT America. | |||
| At the end of ], the backbone and some dedicated hosting centers moved to NTT America, with the web hosting business staying with Verio. At the same time, the European arm, Verio Europe, was moved in its entirety to NTT Europe. In October 2006 Verio Europe was re-named ]. | |||
| ==Some of the ISPs purchased by Verio== | |||
| Verio was initially built on a business model known as a "]", composed entirely of smaller companies operating under the Verio brand-name. By the year 2000, Verio had purchased almost fifty small ISPs,<ref> MorganStanley, 11 Aug 1999, pg. 30</ref> most in the U.S. but some in Europe, ranging in price from under a million dollars (USD) to over 100 million dollars per ISP. These companies were often mature and well known brand names in their local markets, more well known than Verio, and often continued to operate with a great deal of local autonomy even after purchase by Verio. Most of the ISP's purchased by Verio were leading pioneers in the ISP industry representing the first wave of commercial ISP access in local markets around the US and Europe. These companies include ], ], and ]. | |||
| ==Notes== | ==Notes== | ||
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| ==See Also== | ==See Also== | ||
| ] | *] | ||
| ==External links== | ==External links== | ||
Revision as of 22:47, 13 May 2007
Verio is an internet service provider (ISP) in the United States. Incorporated in 1996 in Denver, Colorado, it is currently a wholly owned subsidiary of Nippon Telegraph and Telephone (NTT) Communications, which purchased it in 2000.
History
Verio was initially composed entirely of smaller companies operating under the Verio brand-name. By the year 2000, Verio had purchased almost fifty small ISPs,.
Notes
- The Internet Data Services Report MorganStanley, 11 Aug 1999, pg. 30