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Technology Stocks : Exodus Communications, Inc. (EXDS) -- Ignore unavailable to you. Want to Upgrade?

To: Shaw who wrote (2319)	7/12/2000 10:36:43 AM
From: Rupert	Respond to of 3664

"Global Crossing nears agreement to sell its local phone business" msnbc.com "July 12 — Global Crossing Ltd. is close to selling its local phone business to Citizens Communications Co. for about $3.6 billion in cash and is in serious discussions to sell its GlobalCenter Inc. Web-hosting business to rival Exodus Communications Inc. for about $6 billion to $7 billion in Exodus stock, according to people familiar with the matters." "Global Crossing had been expected to issue a tracking stock for its GlobalCenter business and planned to do an initial public offering in the near future. According to documents filed with the Securities and Exchange Commission, Global Crossing hoped to raise at least $1 billion in an initial public offering. GlobalCenter provides services to businesses, such as hosting their Web sites and providing companies with the Internet infrastructure necessary to manage online enterprises. People familiar with the matter said plans for the tracking stock would be abandoned if the deal with Exodus goes through. However, if Global Crossing is unable to clinch a deal with Exodus, it will go ahead with the tracking stock. Under the scenario being discussed with Exodus, Global Crossing would sell the GlobalCenter business to Exodus, its biggest rival, in a stock swap that would give Global Crossing a large equity stake — about 25% — in Exodus. Global Crossing also may strike a long-term deal for Exodus to use Global Crossing’s network for routing Exodus’ data traffic. Global Crossing could become the primary provider of bandwidth to Exodus, and people familiar with the matter say this is a crucial part of the negotiations under way. GlobalCenter is facing increased competition in the Web-hosting business. Recently, Nippon Telephone & Telegraph Corp. announced an agreement to acquire Verio, a Web-hosting company, for $5 billion. That, coupled with a lackluster market for initial public offerings, may be contributing to Global Crossing’s diminished appetite for a tracking stock, industry watchers speculated. Just two weeks ago Genuity Inc., which operates an Internet backbone that routes data traffic, held a disappointing initial public offering. Exodus, meanwhile, would gain tremendous scale by buying a rival Web-hosting company. While Exodus stock has slipped this year, it has been a Wall Street highflier, rising 159% in the past 12 months, and boasts a market capitalization of $15.3 billion. Earlier this year, Exodus said it planned to invest $637.5 million through a private placement in Mirror Image Internet Inc., a subsidiary of Internet holding company Xcelera.com Inc., as part of a marketing and technology alliance."

To: Shaw who wrote (2319)	7/12/2000 10:51:01 AM
From: Shaw	Read Replies (1) \| Respond to of 3664

Bottom line Exodus has demonstrated that it has the ability to successfully exploit its market niche, by providing a quality service, that is in demand. On going high tech innovations for uses of Exodus's operation, will further enhance the value of Exodus's over all operation. The good news for Yahoo, helps shore up the overall business viability issue in the overall internet industry. I am guessing that brokerages are being cautious in here and keeping quiet until we get through Exodus's earnings announcement and conference call. Also I am sure there are deep pockets out there, that would be happy to assume some of Exodus's debt in return for a portion of Exodus's recurring earnings, and growing market value.