 | |
| Industry | Telecommunications |
|---|---|
| Founded | 1991; 34 years ago (1991) |
| Founder | Doug Humphrey Mike Doughney |
| Defunct | 2003; 22 years ago (2003) |
| Fate | Acquired byWorldcom |
| Headquarters | Laurel, Maryland, United States |
Key people | George L. Kerns,CEO &President T. Scott Zimmerman,CFO |
| Services | Internet service provider |
| Revenue |  $187 million (2002) |
| -$246 million (2002) | |
| Total assets | $220 million (2002) |
| Total equity | -$42 million (2002) |
Number of employees | 785 (2002) |
| Footnotes / references [1] | |
Digex, Inc. was one of the firstInternet service providers in theUnited States.
During thedot-com bubble, its stock price rose to $184 per share; the company was acquired for $1 per share a few years later.[2]
Digital Express Group, predecessor to DIGEX, was founded by Doug Humphrey and Mike Doughney in the basement of Mr. Humphrey's townhouse inGreenbelt, Maryland in 1991, offeringweb hosting services and Internet access.[3]
In 1995, the company raised $8 million from Grotech Capital andVenrock.[3]
In October 1996, the company became apublic company via aninitial public offering.[4] The company employed 260 people by that year.[5]
In 1997, the company was acquired by Intermedia Communications, acompetitive local exchange carrier based inTampa, Florida.[6]
In 1999, Intermedia completed the partialcorporate spin-off of Digex.[7]
In 2000,Microsoft andCompaq invested $100 million in Digex.[8]
In September 2000,WorldCom acquired Intermedia Communications and gained a majority stake in Digex.[9]
In 2003, WorldCom acquired the remainder of the company.[10]
Verizon acquired Worldcom in 2006 and integrated the company intoVerizon Business.
In 1995, Digex launched ISP-TV, a network of linkedCU-SeeMevideotelephony servers from multiple ISPs to provide for large-audience webcasts viastreaming media.[11]
In 1996, ISP-TV began producing original video content in one of the first "cyberstudios" inLaurel, Maryland. Shows included "Head" (a beer show) and "Meeks Unfiltered" withMSNBC correspondentBrock Meeks.[12]
Digex also streamedBud Bowl during theSuper Bowl forAnheuser-Busch.[13]In 1999 Apple hired Digex to stream the Star Wars trailer in QuickTime format. This industry first saturated the internet bandwidth at the time but proved that video streaming had a future.
