Global Crossing is a telecommunications company that provides computer network services and operates level 1 operators. It maintains a large backbone network and offers peering, virtual private networks, leased lines, audio and video conferences, long distance telephones, managed services, dialup, colocation and VoIP centers. Its customer base ranges from individuals to large companies and other operators, with an emphasis on higher-lined services such as managed services and VoIP with leased lines. Its core network delivers services to over 700 cities in more than 70 countries.
Global Crossing is the first global provider of private communications with IPv6 privately placed in private and public backbone networks.
Legally domiciled in Bermuda, although its administrative headquarters are in New Jersey.
In 1999, during the dot-com bubble, the company valued $ 47 billion. However, the company has never experienced a favorable year.
In 2002, the company filed one of the largest bankruptcies in history and its executives were accused of covering up the accounting scandal.
On October 3, 2011, the company was acquired by Level 3 Communications for $ 3 billion, including a $ 1.1 billion debt assumption.
Video Global Crossing
Establishment and initial growth
In March 1997, Global Crossing was founded by Gary Winnick, former Drexel table manager Burnham Lambert, and his Drexel colleagues who moved to work at the Canadian Imperial Bank of Commerce (CIBC): Abbott L. Brown, David L Lee and Barry Porter. In 1997, the company raised $ 35 million, including investments by Winnick and CIBC Argosy Merchant Funds (later Trimaran Capital Partners).
CIBC then realized the estimated profit of $ 2 billion from its relatively small equity investment in the company, making it one of the most profitable investments by financial institutions in the 1990s. Winnick saved $ 735 million from his $ 20 million investment, despite his $ 6 billion interest on paper at its peak.
Winnick was chairman of the company from 1997 to 2002. In 1998, he hired Lodwrick Cook, former CEO of Atlantic Richfield Company, as vice chairman. John Scanlon became the company's first CEO in the same year, but was replaced in March 1999 by Robert Annunziata, who stepped down as president of AT & T Corporation's Business Services group to "build the company from start to finish."
In May 1999, the company made an offer to obtain the US West. However, the company was defeated by Qwest.
In July 1999, the company acquired Global Marine Systems, a submarine cable & cable maintenance business. Wireless, for $ 885 million.
Between 1999 and 2001, the company sponsored Go Bowling in the Glen NASCAR race.
In September 1999, the company acquired Frontier Communications, formerly Rochester Telephone Corporation, for $ 9.9 billion. It was renamed Global Crossing North America.
The company also acquired 49% of the SB Submarine System.
In September 1999, the company established Asia Global Crossing, a $ 1.3 billion joint venture with Softbank and Microsoft to build a fiber optic network in Asia connecting Japan, China, Singapore, Hong Kong, Taiwan, South Korea, Malaysia, and Philippines.
In November 1999, the company acquired Racal's telecommunications business for $ 1.65 billion.
In January 2000, the company formed a 50/50 joint venture with Hutchinson Whampoa, worth $ 1.2 billion, for fiber optic networks in Hong Kong.
In March 2000, Annunziata resigned, receiving $ 160 million during his 13-month tenure. Leo Hindery, who had joined the company a few months earlier as head of its web hosting division, GlobalCenter, later became CEO.
In August 2000, the company sought to rescue the Russian submarine during the Kursk submarine disaster.
In September 2000, the company announced an agreement to sell GlobalCenter to Exodus Communications for $ 6.5 billion. By the time the deal closed in January 2001, it was worth only $ 1.95 billion. Hindery later resigned as CEO and was replaced by Thomas Casey, a lawyer who came to Global Crossing from Merrill Lynch, where he became the joint head of the global telecommunications investment banking group.
For 2000, the company lost $ 1.4 billion.
In 2001, the company sold its local phone operations and Frontier name in 2001 to Citizens Communications for $ 3.65 billion in cash.
In the summer of 2001, the company began discussing transactions with Enron in which the company would pay Enron $ 650 million for its fiber optic network instead of Enron paying the company $ 650 million to use the network, a move that would boost both companies' revenue at no cost. The transaction did not materialize.
In the fourth quarter of 2001, the company lost $ 3.4 billion in revenues of $ 793 million. In January 2002, the company filed for bankruptcy. It recorded total assets of $ 22.4 billion and debt of $ 12.4 billion and paid an annual interest of $ 600 million. As part of the bankruptcy, Hutchison Whampoa and ST Telemedia agreed to invest $ 750 million in the company. Hutchinson Whampoa was later pulled out of the deal due to regulatory resistance.
In April 2002, Hutchinson Whampoa purchased a 50% stake in the Hong Kong joint venture of $ 120 million.
In November 2002, Global Crossing Asia's Global Crossing subsidiary filed for bankruptcy and sold its assets to Asia Netcom, a subsidiary of China Netcom.
Between 1998 and 2001, Winnick sold about $ 420 million in company shares and other executives sold an additional $ 900 million in company stock.
On December 9, 2003, the company emerged from bankruptcy and on April 1, 2004, the company once again became a public company.
In March 2004, Gary Winnick and other former executives filed lawsuits filed by investors and former employees who accused executives of securities fraud by using improper accounting to inflate corporate earnings.
In October 2006, the company announced the acquisition of UK-based Fibernet Corp for £ 49.8 million.
In May 2007, the company acquired Impsat.
In October 2011, Level 3 Communications acquired the company with $ 3 billion, including a $ 1.1 billion debt assumption.
Maps Global Crossing
Controversy
Political activity
The company donated $ 250,000 for each of the 2000 Republican National Convention and 2000 Democratic National Convention and made a major contribution to politicians from both sides. The company also invites politicians to invest in the company. The company hired lobbyist and former US Attorney General Assistant Anne Bingaman, married New Mexico Democratic Senator Jeff Bingaman, paid $ 2.5 million between January and June 1999 to try to block licensing the AT & T, MCI, and Sprint to put cable from US to Japan.
Executive Bonus
Despite massive layoffs, unpaid employees, and pensions were canceled as a result of bankruptcy, executives received huge bonuses and loan assistance.
References
Source of the article : Wikipedia
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