Sprint Tops Up Its Investment in EarthLink; EarthLink's Cash Position Increases Approximately 64 Percent to $1.1 Billion
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ATLANTA--(BUSINESS WIRE)--May 9, 2000--EarthLink (NASDAQ:ELNK)
today announced that Sprint (NYSE:FON) has committed to top up its
investment in EarthLink following the completion of EarthLink's merger
with MindSpring. Sprint has agreed to purchase approximately 26
million shares from EarthLink for a total of approximately $431
million, bringing its overall investment in EarthLink up to
approximately 26.7 percent interest.
Under the terms of the original EarthLink-Sprint alliance
agreement, Sprint has the right to top and retain its original
position of 28.7 percent interest in EarthLink and may increase its
ownership to this level through additional purchases. The completion
of the $4 billion EarthLink/MindSpring merger on Feb. 4, 2000, reduced
the percentage of Sprint's ownership in EarthLink to 14.6 percent.
Sprint had six months from the time the merger closed to exercise its
top-up option by purchasing additional EarthLink stock from the
Company. Sprint continues to retain two seats on EarthLink's board,
occupied by William T. Esrey, chairman and CEO of Sprint, and Len J.
Lauer, president of Sprint's consumer services group.
"Sprint's most recent investment of $77 million in EarthLink
following our deal with Apple, coupled with its current investment of
roughly $431 million, reaffirms Sprint's commitment to our strategic
alliance," said Garry Betty, CEO of EarthLink.
About EarthLink
It's your Internet.
EarthLink is one of the world's leading Internet service
providers, bringing the magic of the Internet to approximately 3.5
million individuals and businesses every day. Headquartered in
Atlanta, EarthLink provides a full range of innovative access, hosting
and e-commerce solutions to thousands of communities internationally
from more than 5,000 points of presence.
EarthLink is committed to doing an exceptional job of pleasing its
customers, shareholders and the community by following the company's
Core Values and Beliefs. Information about EarthLink and EarthLink
Sprint services is available by calling 800/395-8425 and through
EarthLink's Web site at www.earthlink.net .
This news release contains forward-looking statements, forecasts
and predictions that involve risks and uncertainties. The Company's
actual results could differ materially from those anticipated in these
forward-looking statements; forecasts and predictions as a result of
many factors including those discussed in EarthLink's various
reports filed from time to time with the Securities and Exchange
Commission.
CONTACT: EarthLink, Pasadena, Calif.
Kirsten Hamling, 626/296-2467
kirstenk@corp.earthlink.net
KEYWORD: GEORGIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS E-COMMERCE INTERNET
TELECOMMUNICATIONS MARKETING AGREEMENTS
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