WorldCom’s Acquisition of MCI

B. Rajesh Kumar
Additional contact information
B. Rajesh Kumar: Institute of Management Technology

Chapter 26 in Wealth Creation in the World’s Largest Mergers and Acquisitions, 2019, pp 229-233 from Springer

Abstract: Abstract During 1997, WorldCom and MCI merged in a deal valued at $37 billion. WorldCom finally won the takeover battle with British Telecommunications Plc and GTE Corp for the control of MCI Communications Corp. The merger created a telecommunications conglomerate with estimated revenues of $30 billion in the year 1998. The deal combined the second and fourth largest US long-distance service providers to create a major powerhouse in global telecommunications and Internet services. The new company was renamed as MCI WorldCom. The new MCI WorldCom became the second largest long-distance carrier behind AT&T Corporation. The new merged MCI WorldCom controlled about 25% of the long-distance market compared with approximately 50 percent share of AT&T. MCI WorldCom became the world’s largest carrier of Internet traffic. MCI WorldCom became one of the largest companies offering a range of services from local and long-distance to Internet services to over 22 million clients in over 200 countries. MCI shareholders received $51 in WorldCom common stock for each MCI share they owned. During 2005, Verizon Communications reached an agreement to acquire MCI for $7.6 billion. The acquisition of MCI gave Verizon an international long-distance network and several large corporate customers.

Keywords: WorldCom; Long-distance Service Providers; Major Powerhouse; Large Corporate Customers; Verizon Communications (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:mgmchp:978-3-030-02363-8_26

Ordering information: This item can be ordered from
http://www.springer.com/9783030023638

DOI: 10.1007/978-3-030-02363-8_26

Access Statistics for this chapter

More chapters in Management for Professionals from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().