Report: Exodus to Buy GlobalCenter
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Exodus Communications is reportedly about to take steps that would insure an undisputed market leading position in the web hosting field.
The company is in advanced discussions to acquire Global Crossing's GlobalCenter hosting business for about $6.5 billion in stock, the interactive edition of The Wall Street Journal reported on Wednesday. Both companies' boards were scheduled to discuss the potential deal late Wednesday evening.
If consummated, the deal would be the latest sign of consolidation in the web hosting space. Worldcom has already agreed to purchase Intermedia Communications in order to gain control of its stake in Digex.
Officials from both companies weren't immediately available.
In fact, the merger is contingent on Exodus agreeing to use Global Crossing's fiber-optic network to carry the bulk of its traffic for the next 10 years. The commitment is believed to be valued at more than $4 billion, the article said.
Shares of Global Crossing Exodus and GlobalCenter are currently the No. 1 and No. 2 web hosting companies, respectively.
traded little changed for most of Wednesday but spiked in the last minutes of trading, closing up 1-7/8 to 29-7/8. Exodus stock
lost 2-3/4 to 53-1/4.
Exodus and GlobalCenter are currently the No. 1 and No. 2 web hosting companies, respectively.