WorldCom


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WorldCom

The former name of MCI. Based in Jackson, MS, WorldCom, Inc. was a major, international telecommunications carrier. It was founded in 1983 by Bernard E--ers as Long Distance Discount Service (LDDS), a reseller of AT&T WATS lines to small businesses. LDDS grew by acquiring more than 70 companies, including IDB WorldCom, a leading international carrier whose name it adopted; WilTel, a major telecom carrier; and MFS Communications, an international phone company and parent of UUNET, a prominent Internet provider.

In 1997, the network operations of America Online and CompuServe became part of WorldCom. It also merged with Brooks Fiber and then acquired MCI, making it the second largest long distance carrier in the U.S. In 2002, WorldCom filed for bankruptcy after disclosing it had inflated profits for the prior two years by USD $3.8 billion. The amount was later found to be more than $10 billion, making it the largest accounting fraud in U.S. corporate history.

In April 2004, WorldCom emerged from bankruptcy and changed its name to MCI, which it acquired in 1998. MCI was founded in 1968 by William McGowan as Microwave Communications of America. Throughout the 1970s, McGowan led the battle to offer competitive long distance services in the U.S., cracking the monopoly of AT&T.

Ironically, having shed $36 billion in debt, WorldCom emerged from bankruptcy with a better balance sheet than most of its competitors. It also wound up with a corporate name respected for its pioneering efforts in telecom. One year later, MCI was acquired by Verizon. See MCI.
References in periodicals archive ?
Why does WorldCom expect to emerge from bankruptcy with significant NOLs?
According to court papers, without the MG arrangement, WorldCom wouldn't have access to surety bonds that are necessary to maintain its business.
At WorldCom, we have made a conscious and consistent effort to build a diverse customer base through minority participation in our contracting and competitive bidding process, both for direct procurement and through subcontracting opportunities.
Sprint had been discussing a merger with MCI Worldcom for two weeks but received a $100 billion unsolicited offer Saturday from BellSouth, the Atlanta-based Baby Bell company, prompting MCI Worldcom to raise its bid Monday.
One call to a WORLDCOM partner on the Rapid Response Team and the executive suite can have seasoned communications professionals on the job immediately who know the country, the language and the culture to meet the company's unique needs and to protect its reputation at home and abroad.
That coverage is likely to be challenged by the insurers, which probably will move to rescind their policies with WorldCom, based on what appears to be either fraud or intentional misleading on WorldCom's part, Hartwig said.
A combined Sprint-MCI Worldcom would pose a larger competitor to AT&T Corp.
Yesterday MCI WorldCom (WCOEQ, MCWEQ, MCIAV) announced a series of steps that will help the company emerge from bankruptcy.
Both sides have reportedly discussed a financial structure for a deal in which MCI WorldCom would acquire Sprint's core business for stock.
Current and former WorldCom and MCI shareholders and employees can visit these sites to view and download the WorldCom class action opt-out form, "Notice of Class Action.
WorldCom is taking its biggest leap yet in trying to buy No.
Amodio's lawyer, Theodore Babbitt, also filed notices of sworn depositions of former WorldCom CEO Bernard Ebbers, former Salomon telecommunications analyst Jack Grubman and Citigroup CEO Sanford Weill.