several mergers that began in 1985 after the board elected Bernie Ebbers as the company CEO, the company grew by leaps and bounds. On November 4, 1997, WorldCom and MCI Communications announced their $37 billion merger to form MCI WorldCom, making it the largest corporate merger of U.S. history. On October 5, 1999, Sprint Corporation and MCI WorldCom announced a $129 billion merger agreement between the two companies. This deal did not finalize because of opposition from the U.S. Department of Justice
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Assignment I: Tainted Baby Powder Milk 1. Yes, I believe there has been some damage to Baidu.com’s reputation because there was a significant stock price drop from $308 to $110. Stock price drops usually are the result of a lack of confidence by the stakeholders in the future performance of the company. Lack of confidence can often be attributed to actions by a company that are revealed to the stakeholders. 2. Future reputational damage could be reflected by a lack of confidence of the stakeholders
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WorldCom 1. a. Estimated Future Line Costs (L) XXX Line Cost Expense (E) XXX b. Line Cost Expense (E) XXX Estimated Future Line Costs (L) XXX Cash (A) XXX c. The fundamental
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/ Robust Wireless Network * advance Fiber Network (3) Financial Performance / Position (4) Physical Resource: Acquisition & Merger • January 2006 4- Verizon Communications closed its $8.44 billion acquisition of long-distance carrier MCI • January 2009 5- Verizon Wireless $28.1 billion acquisition of regional carrier Alltel Wireless is finally complete, making the combined company the largest wireless carrier in the United States. • April 20116 - Verizon Communications (VZ) has closed
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WorldCom is one of the biggest scandals that happen in the world, especially in the United States of America. WorldCom merged with MCI in 1997 for US$37 billion to form MCI WorldCom. Later on WorldCom wanted to merge with Sprint Corporation in 1999 becoming a $129 billion merge, but before the two companies finalized the US department of Justice and the European Union stepped in and didn’t want this to happen, for this merge had the possibility of creating a monopoly. Bernard Ebbers was the CEO
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substantial international presence and a large ownership stake in the world’s Internet backbone In 1997, WorldCom used its highly valued stock to outbid British Telephone and GTE (then the nation’s second-largest local phone company) to acquire MCI, the nation’s second-largest long-distance company. The $42 billion price represented, at the time, the largest takeover in U.S. history. WorldCom’s integrated service packages and its Internet strengths
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EXAMINING A BUSINESS FAILURE Examining a Business Failure Linda Lopez Week One Assignment University of Phoenix Organizational Leadership LDR 531 Group Number: SC09MBA10 G. Edward McCullough, M.A. March 25, 2010 Examining a Business Failure: WorldCom Why do businesses fail? Most business corporations experience company failure because of their lack of organizational leadership and unethical practices, which can consist of fraud, conspiracy, falsifying documents, and embezzlement.
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originally started out as a small provider of long distance telephone service in Mississippi under the name LDDS and later changed its name to WorldCom. During the 1990’s the company took on an aggressive acquisition strategy acquiring the likes of MCI Communications, UUNET, CompuServe, and America Online’s data network. With these acquisitions, WorldCom became a leader in the telecommunications industry due to its vast infrastructure. The company now had global reach in more than 65 countries and
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Capstone Case Analysis – Identifying the Problem or Issue ACCT 480 Sue Miller In publicly traded companies, stockholders and investors rely on accurate financial statements and on an outside auditor’s statement to determine if they have a good company to invest in. There were several merger and take overs in the telecommunication community by WorldCom. When mergers occur there many factors that affect the work of both employees and major management. This case analysis will point out problems
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(American Greed, 2008). Bernard Ebbers was company’s CEO and within 10 years he was able to make LDDS into the largest telecom company with a revenue of US 6 billion (American Greed, 2008). In 1998, Ebbers performed the biggest merger by buying out MCI. Company’s name was changed to WorldCom to reflect its size and capacity. In 1999 WorldCom’s performance was at its highest peak, with its stock at US 68 per share (American Greed, 2008). Ebber’s main strategies as CEO of WorldCom were: aggressive acquisitions;
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