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RealTime IT News

MindSpring Splits Stock, Continues Shopping Spree

Internet service provider MindSpring Enterprises, Inc. made headlines this week with news of its three-for-one stock split and the acquisition of New Orleans-based I-Way Networks Inc.'s subscriber base.

MindSpring said it expects the transfer of I-Way customers to be finalized within the next two months. Financial terms of the purchase were not disclosed.

Lately, the ISP has been in buying mode, snapping up subscribers of Pensacola Internet in Florida last week, and PCLnet Internet's subscribers in Gadsden, Alabama at the beginning of the month.

On June 24, MindSpring (NASDAQ: MSPG) also announced a three-for-one stock split in the form of a stock dividend, with the record date for the stock split as July 9, 1998.

The split plan drove MindSpring's stock up 17% yesterday where it hit an all-time high of $96 before settling down at $94.25. The company did not comment on the surge, and analysts said the shares were most likely grabbed by individual investors intent on getting in on the Internet space since shares were sold in small lots.

According to analysts, the shares may have spiked because there were few shares to trade; approximately 8.5 million shares are outstanding, with about half that amount already held. Yesterday it was estimated that 3.4 million MindSpring shares were traded.