NorthPoint Communications
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NorthPoint Communications Group, Inc. was a
competitive local exchange carrierA competitive local exchange carrier (CLEC), in the United States The United States of America (USA), commonly known as the United States (U.S. or US), or America, is a country Contiguous United States, primarily located in North America. It ...
focused on
data transmission Data transmission and data reception (or, more broadly, data communication or digital communications) is the transfer and reception of data (a Digital data, digital bitstream or a digitized analog signal) over a Point-to-point (telecommunications) ...

data transmission
via
digital subscriber line Digital subscriber line (DSL; originally digital subscriber loop) is a family of technologies that are used to transmit digital data Digital usually refers to something using digits, particularly binary digits. Technology and computing Hardwa ...
s. The company had relationships with
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Intel
, Verio, Cable & Wireless, Frontier Corporation, Concentric Network, ICG Communications, Enron, Network Plus, and Netopia. The company had investments from The Carlyle Group, Accel Partners, Benchmark (venture capital firm), Benchmark, and Greylock Partners.


History

The company was founded in 1997 by Michael W. Malaga and 5 other former executives of Metropolitan Fiber Systems. On May 5, 1999, during the dot-com bubble, the company became a public company via an initial public offering in which it sold 15 million shares at $24 per share. Malaga, then 34 years old, was worth $300 million on paper. In September 2000, Verizon agreed to acquire a 55% interest in the company and merge the companies' DSL businesses. In November 2000, as its customers failed to pay their bills, NorthPoint restated downwards its financial performance for the third quarter of 2000, lowering revenue from $30 million to $24 million. After the earnings restatement, Verizon terminated its acquisition agreement, claiming that a material adverse change had occurred. Northpoint sued Verizon to force it to complete the transaction. The lawsuit was settled out of court in July 2002, with Verizon agreeing to pay $175 million to Northpoint. NorthPoint stated that "it would cut its workforce by 19%, or 248 jobs, to lower expenses after the collapse of its merger with Verizon."


Bankruptcy

In January 2001, NorthPoint filed bankruptcy. Some internet service providers, which faced a disruption in service, blamed the banks for failing to work out a deal to save the company. In March 2001, AT&T Corporation acquired the assets of NorthPoint for $135 million in a liquidation.


References

{{Dot-com Bubble 1997 establishments in California 1999 initial public offerings Defunct companies based in the San Francisco Bay Area Defunct telecommunications companies of the United States Defunct networking companies Dot-com bubble AT&T subsidiaries Internet service providers of the United States