MCI WorldCom And Sprint Create Pre-Eminent Global Communications Company For 21st Century
MCI WorldCom (Nasdaq: WCOM) and Sprint (NYSE: FON, PCS) today announced that the boards of directors of both companies have approved a definitive merger agreement. The merger creates the pre-eminent global communications company for the 21st century - a dramatically more effective competitor. The combined company, to be called WorldCom, will provide a full range of services to residential and business customers on its owned, end-to-end, state-of-the-art network infrastructure. WorldCom will be a leader in the fastest growing areas of global communications services, offering innovative broadband, ""all distance"" services to businesses and homes, and nationwide digital wireless voice and data services. Bernard J. Ebbers, President and Chief Executive Officer of MCI WorldCom, said, ""The economics of the combination are particularly compelling and WorldCom will have the capital, proven marketing strength and state-of-the-art networks to compete more effectively against the incumbent carriers domestically and abroad. Sprint's ability to offer a full range of wireline and wireless services will benefit our customers and fuel sustained double-digit revenue and earnings growth. The merger with Sprint is particularly timely as wireless communications emerges as a critical component of full service offerings. Increasingly, wireless will be used for Internet access and data services, two areas in which both companies excel. Gaining an all-digital nationwide footprint with common technology and spectrum that delivers next generation capabilities is of paramount importance."" William T. Esrey, Chairman and Chief Executive Officer of Sprint, said, ""From building the first nationwide fiber optic network to creating the nation's first all-digital, nationwide PCS wireless system, Sprint has been a pioneer in the communications industry. Sprint has utilized technology and marketing innovation to deliver value to consumers and businesses worldwide. Sprint ION will enable the merged company to provide end-to-end integrated broadband services for the home, as well as for the business market, as an alternative to traditional cable and telephony providers. The combined strengths of WorldCom and Sprint will allow us to bring customers a suite of fully integrated broadband and wireless all-distance services providing consumers and businesses with exciting competitive alternatives."" The merged company will be led by the industry's most experienced, skilled and respected management team. The management team will consist of top executives from MCI WorldCom and Sprint. Upon completion of the merger, Mr. Esrey will become Chairman of WorldCom. Mr. Ebbers will be President and Chief Executive Officer of the combined company. The board of directors of the combined company will have 16 members, 10 from MCI WorldCom and six from Sprint. WorldCom will maintain significant operations in Sprint locations, including major operations in Kansas City. The merger is subject to the approvals of MCI WorldCom and Sprint stockholders as well as approvals from the Federal Communications Commission, the Justice Department, various state government bodies and foreign antitrust authorities. The companies anticipate that the merger will close in the second half of 2000. About Sprint Sprint is a global communications company - at the forefront of integrating long distance, local and wireless communications services. Sprint built and operates the United States' first nationwide all-digital, fiber-optic network and is a leader in advanced data communications services. Sprint has $17 billion in annual revenues and serves more than 20 million business and residential customers. Sprint is traded on the NYSE under FON and PCS. For the latest updates on Sprint, check http://www.sprint.com. About MCI WorldCom MCI WorldCom is a global leader in communications services with 1998 revenues of more than $30 billion and established operations in more than 65 countries encompassing the Americas, Europe and the Asia-Pacific regions. MCI WorldCom is a premier provider of facilities-based and fully integrated local, long distance, international and Internet services. MCI WorldCom's global networks, including its state-of-the-art pan-European network and transoceanic cable systems, provide end-to-end high-capacity connectivity to more than 40,000 buildings worldwide. MCI WorldCom is traded on Nasdaq under WCOM. For more information on MCI WorldCom, visit the World Wide Web at http://www.wcom.com. Source: MCI WorldCom; Sprint, Web Site: http://www.sprint.com http://www.wcom.com.