|Founder||Michael W. Malaga|
|Fate||Bankruptcy, assets acquired by AT&T|
(Chief Development Officer)
Number of employees
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.
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. NorthPoint stated that "it would cut its workforce by 19%, or 248 jobs, to lower expenses after the collapse of its merger with Verizon."
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.
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- SCHIESEL, SETH (November 30, 2000). "Verizon Abandons NorthPoint Deal". The New York Times.
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- "NorthPoint files for Chapter 11". American City Business Journals. January 17, 2001.
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- 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.