WorldCom bids $40M for Rhythms' assets

by George A. Chidi, Jr.

September 25, 2001 —

WorldCom Inc. announced Tuesday that it bid US$40 million for a portion of the assets of bankrupt DSL (digital subscriber line) provider Rhythms NetConnections Inc.

The bid must be approved in U.S. Bankruptcy Court. The WorldCom bid would provide debtor-in-possession financing, which would keep Rhythms' operations running in the parts of the network WorldCom plans to acquire. WorldCom said in a release that the acquired assets would only include facilities where WorldCom already has a significant DSL customer base.

WorldCom did not specify exactly what areas or equipment it intended to buy. In March, AT&T Corp. bought the collocation facilities and equipment of defunct DSL provider NorthPoint Communications Group Inc. for approximately $135 million, expressing its intent to enter the DSL market for businesses and consumers.

WorldCom, in Clinton, Mississippi, is at +1-601-360-8600 or http://www.wcom.com/. Rhythms, in Englewood, Colorado, can be reached at +1-303-476-4200 or at http://www.rhythms.com/.

IDG News Service