EarthLink invests $50 million in Covad

Iria · Mar 17, 2006, 06:26 AM

EarthLink said Thursday that it has made a $50 million equity investment in Covad Communications Group to fund the expansion of the companies' co-developed voice services to eight new markets.

As part of the deal, EarthLink will receive $10 million in Covad common shares and $40 million in convertible debt, due in 2011.

Covad, a broadband access wholesaler, will use the money to fund infrastructure construction so that EarthLink can offer its line-powered voice service using the Covad network in Atlanta, Chicago, Los Angeles, Miami, New York, Philadelphia, San Diego and Washington, D.C.

EarthLink announced in January that it had partnered with Covad to offer the new voice over Internet Protocol, or VoIP, service in Dallas, Seattle and the San Francisco Bay area. EarthLink is bundling the service, starting this week, with DSL broadband access.
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Read More / Source: News.com

Mar 17, 2006, 06:26 AM	#1
Iria DriverHeaven Extreme Member Join Date: Apr 2004 Posts: 7,275 Rep Power: 89	EarthLink invests $50 million in Covad EarthLink said Thursday that it has made a $50 million equity investment in Covad Communications Group to fund the expansion of the companies' co-developed voice services to eight new markets. As part of the deal, EarthLink will receive $10 million in Covad common shares and $40 million in convertible debt, due in 2011. Covad, a broadband access wholesaler, will use the money to fund infrastructure construction so that EarthLink can offer its line-powered voice service using the Covad network in Atlanta, Chicago, Los Angeles, Miami, New York, Philadelphia, San Diego and Washington, D.C. EarthLink announced in January that it had partnered with Covad to offer the new voice over Internet Protocol, or VoIP, service in Dallas, Seattle and the San Francisco Bay area. EarthLink is bundling the service, starting this week, with DSL broadband access. ______________ Read More / Source: News.com