Excerpts: Global Crossing’s 10-K.
- In January 2001, we sold our GlobalCenter web hosting business to Exodus Communications, Inc. for 108.2 million Exodus common shares, representing approximately 20.0% of its outstanding shares at the effective time of the merger. As of that date, the value of the transaction was approximately $1.95 billion.
- As part of the transaction, Exodus also committed to a 10-year network services agreement under which it will purchase from us 50% or more of all of its future network capacity needs outside of Asia. Exodus and Global Crossing also entered into a long-term global marketing services agreement under which we will offer Exodus’ web hosting services.
- In addition, Exodus and Asia Global Crossing have formed a joint venture to provide complex web hosting and managed services in Asia. Exodus owns 67% and Asia Global Crossing owns 33% of the new venture, which will purchase at least 60% of its networking needs from Asia Global Crossing. The transactions with Exodus are intended to allow us to capitalize on the fast-growing Internet intermediary market by providing managed broadband services to that market without the significant investments that would be required to compete successfully in that market.
- In January 2001, the Company completed the sale of GlobalCenter to Exodus Communications. Under the terms of the agreement, Global Crossing received 108.2 million Exodus common shares, valued at $1.95 billion at the date of the closing and $1.65 billion at March 1, 2001.
- NextGen Markets. Our focus on the NextGen market leverages our broadband network to help us capture a greater share of the market for Internet intermediaries such as Internet service providers (“ISPs”) and application service providers (“ASPs”). Since it is less expensive for these intermediaries to outsource than to build a network, we believe the members of this market will increasingly look to integrated telecommunications providers to fulfill their broadband requirements. In connection with the sale of GlobalCenter, we entered into an agreement with Exodus, an Internet hosting company, in which Exodus and Global Crossing will co-market each other’s services. Furthermore, Exodus will purchase at least 50% of its network services outside of Asia from Global Crossing, and at least 60% of its network services in Asia from Asia Global Crossing. There are approximately 1,000 companies in this market.
Source: Global Crossing Ltd