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Digex

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Digex
IndustryTelecommunications
Founded1991;33 years ago(1991)
FounderDoug Humphrey
Mike Doughney
Defunct2003;21 years ago(2003)
FateAcquired byWorldcom
HeadquartersLaurel, Maryland,United States
Key people
George L. Kerns,CEO&President
T. Scott Zimmerman,CFO
ServicesInternet service provider
RevenueDecrease$187 million (2002)
Decrease-$246 million (2002)
Total assetsDecrease$220 million (2002)
Total equityDecrease-$42 million (2002)
Number of employees
785 (2002)
Footnotes / references
[1]

Digex, Inc.was one of the firstInternet service providersin theUnited States.

During thedot-com bubble,its stock price rose to $184 per share; the company was acquired for $1 per share a few years later.[2]

History[edit]

Digital Express Group, predecessor to DIGEX, was founded by Doug Humphrey and Mike Doughney in the basement of Mr. Humphrey's townhouse inGreenbelt, Marylandin 1991, offeringweb hosting servicesand Internet access.[3]

In 1995, the company raised $8 million from Grotech Capital andVenrock.[3]

In October 1996, the company became apublic companyvia aninitial public offering.[4]The company employed 260 people by that year.[5]

In 1997, the company was acquired by Intermedia Communications, acompetitive local exchange carrierbased inTampa, Florida.[6]

In 1999, Intermedia completed the partialcorporate spin-offof Digex.[7]

In 2000,MicrosoftandCompaqinvested $100 million in Digex.[8]

In September 2000,WorldComacquired Intermedia Communications and gained a majority stake in Digex.[9]

In 2003, WorldCom acquired the remainder of the company.[10]

Verizon acquired Worldcom in 2006 and integrated the company intoVerizon Business.

Streaming media[edit]

In 1995, Digex launched ISP-TV, a network of linkedCU-SeeMevideotelephonyservers from multiple ISPs to provide for large-audience webcasts viastreaming media.[11]

In 1996, ISP-TV began producing original video content in one of the first "cyberstudios" inLaurel, Maryland.Shows included "Head" (a beer show) and "Meeks Unfiltered" withMSNBCcorrespondentBrock Meeks.[12]

Digex also streamedBud Bowlduring theSuper BowlforAnheuser-Busch.[13] In 1999 Apple hired Digex to stream the Star Wars trailer in QuickTime format. This industry first saturated the internet bandwidth at the time but proved that video streaming had a future.

References[edit]

  1. ^"DIGEX, INCORPORATED 2002 Form 10-K Annual Report".U.S. Securities and Exchange Commission.
  2. ^Handley, John (2005).Telebomb.Amacom.ISBN9780814428894.
  3. ^abSwisher, Kara(April 10, 1995)."DIGEX FLOURISHES WITH INTERNET'S POPULARITY".The Washington Post.
  4. ^Mullaney, Timothy J. (October 18, 1996)."Digex initial stock offering sells 4.5 million shares Md. Internet provider is worth $125.4 million".The Baltimore Sun.
  5. ^Starzynski, Bob (October 11, 1996)."High-tech firms head to market".Washington Business Journal.Archived fromthe originalon November 28, 2002.RetrievedNovember 20,2023.
  6. ^"Intermedia Will Acquire Digex In a $147 Million Stock Swap".The Wall Street Journal.June 5, 1997.
  7. ^Noguchi, Yuki (September 6, 2000)."Deal to Give WorldCom Control of Digex".The Washington Post.
  8. ^"Microsoft, Compaq invest $100M in Digex".American City Business Journals.January 12, 2000.
  9. ^Deogun, Nikhil; Solomon, Deborah (September 5, 2000)."WorldCom Closes Deal to Buy Intermedia, Gaining Control of Web-Hosting Business".The Wall Street Journal.
  10. ^Clabaugh, Jeff (November 17, 2003)."WorldCom buys out Digex in dollar sale".American City Business Journals.
  11. ^Neely, Esme (October 12, 1997)."Faster connections should boost use of video calls".American City Business Journals.
  12. ^JOSSI, FRANK (May 1, 1997)."Live, from Cyberspace".Wired.
  13. ^"Internet Pioneer and Co-Founder of Digex, Doug Humphrey, Joins Savtira Advisory Board"(Press release).PRWeb.March 23, 2012.
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