NorthPoint Communications Group, Inc. was a competitive local exchange carrier focused on data transmission via digital subscriber lines. The company had relationships with Microsoft, Tandy Corporation, 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, and Greylock Partners.
|Fate||Bankruptcy, assets acquired by AT&T|
|Founder||Michael W. Malaga|
Number of employees
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 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.
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.
- "NORTHPOINT COMMUNICATIONS GROUP INC (NPNT) IPO". NASDAQ.
- Sinton, Peter (May 12, 1999). "The Cash Just Keeps Coming / NorthPoint founder stays grounded". San Francisco Chronicle.
- Vrana, Deborah (May 6, 1999). "This IPO Goes to Show: 'Dot-com' Is No Magic Bullet". Los Angeles Times.
- SCHIESEL, SETH (November 30, 2000). "Verizon Abandons NorthPoint Deal". The New York Times.
- Young, Shawn (November 21, 2000). "NorthPoint Restates Earnings; Loss Could Affect Verizon Deal". The Wall Street Journal.
- Bartash, Jeffry (November 29, 2000). "Verizon backs out of NorthPoint deal". Marketwatch.
- Lais, Sami (November 30, 2000). "Verizon, NorthPoint in heated dispute over DSL merger deal". Computerworld.
- "Verizon Agrees to Settle NorthPoint Merger Suits". Los Angeles Times. Bloomberg News. July 24, 2002.
- "NorthPoint files for Chapter 11". American City Business Journals. January 17, 2001.
- Young, Shawn (January 17, 2001). "NorthPoint Communications Files For Chapter 11 Creditor Protection". The Wall Street Journal.
- Weiss, Todd R. (January 17, 2001). "NorthPoint files for Chapter 11 protection". Computerworld.
- Wagner, Jim (March 29, 2001). "ISPs React To NorthPoint's Imminent Shutdown". QuinStreet.
- Young, Shawn; Solomon, Deborah (March 23, 2001). "AT&T to Acquire Most Assets Of NorthPoint Communications". The Wall Street Journal.