In this article we will explore the different aspects related to NorthPoint Communications, delving into its importance today and its relevance over time. From its origins to its impact on today's society, we will analyze the many facets of NorthPoint Communications and its influence in various areas, such as culture, economics, politics and daily life. Through a multidisciplinary approach, we will examine how NorthPoint Communications has evolved and adapted to the changes of the modern world, and how it continues to be a topic of interest and debate today. Through detailed and critical analysis, this article seeks to shed light on the many aspects of NorthPoint Communications and its implications for the present and future.
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 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.
In many ways, the rise and fall of NorthPoint mirrors the fate of one of its chief competitors: Rhythms NetConnections.