EarthLink Network and MindSpring Enterprises today announced plans for a merger that will spawn a new ISP with more than 3 million customers.
The new public company will retain the EarthLink name (and trade under EarthLink's NASDAQ symbol, ELNK), but will be headquartered in MindSpring's home base of Atlanta, according to the companies. MindSpring stockholders will get one share of the new company's stock for each share of MindSpring stock, while EarthLink stockholders will receive 1.615 shares for each share of EarthLink stock.
The new EarthLink company would have a combined market capitalization of more than $3 billion based on Wednesday's closing price for EarthLink's and MindSpring's stock. The companies expect the new ISP's customer base to be second only to that of America Online.
The merger is expected to be complete in next year's first quarter, according to the statement, and will leave intact EarthLink's current business alliance and contractual agreements with Sprint.
MindSpring's founder, Chairman and CEO Charles Brewer will be the new company's chairman. EarthLink President and CEO Charles "Garry" Betty will be the new company's CEO. MindSpring President and Chief Operating Officer Mike McQuary will serve as president. Betty, McQuary and EarthLink's founder and Chairman Sky Dayton will sit on the board of directors.
EarthLink, in Pasadena, Calif., can be reached at 626-296-2400 or at http://www.earthlink.com. MindSpring, in Atlanta, can be reached at 404-815-0770 or at http://www.mindspring.net.
RELATED LINKS
