Digex
{{Short description|One of the first Internet service providers in the United States}}
{{Infobox company
| name = Digex
| logo = File:Digex logo.svg
| foundation = {{Start date and age|1991}}
| fate = Acquired by Worldcom
| defunct = {{End date and age|2003}}
| founder = Doug Humphrey
Mike Doughney
| hq_location = Laurel, Maryland, United States
| key_people = George L. Kerns, CEO & President
T. Scott Zimmerman, CFO
| industry = Telecommunications
| services = Internet service provider
| revenue = {{decrease}} $187 million (2002)
| net_income = {{decrease}} -$246 million (2002)
| assets = {{decrease}} $220 million (2002)
| equity = {{decrease}} -$42 million (2002)
| num_employees = 785 (2002)
| footnotes = {{cite web | url=https://www.sec.gov/Archives/edgar/data/1085098/000092838503000943/d10k.htm | title=DIGEX, INCORPORATED 2002 Form 10-K Annual Report | publisher=U.S. Securities and Exchange Commission}}
}}
Digex, Inc. was one of the first Internet service providers in the United States.
During the dot-com bubble, its stock price rose to $184 per share; the company was acquired for $1 per share a few years later.{{cite book | url=https://books.google.com/books?id=kPoNgFrwKtMC&pg=PA107 | title=Telebomb | first=John | last=Handley | publisher=Amacom | year=2005| isbn=9780814428894 }}
History
Digital Express Group, predecessor to DIGEX, was founded by Doug Humphrey and Mike Doughney in the basement of Mr. Humphrey's townhouse in Greenbelt, Maryland in 1991, offering web hosting services and Internet access.{{cite news | url=https://www.washingtonpost.com/archive/business/1995/04/10/digex-flourishes-with-internets-popularity/12a4e3ed-d9ef-413d-9197-54fd452e87b0/ | title=DIGEX FLOURISHES WITH INTERNET'S POPULARITY | first=Kara | last=Swisher |author-link=Kara Swisher | newspaper=The Washington Post | date=April 10, 1995}}
In 1995, the company raised $8 million from Grotech Capital and Venrock.
In October 1996, the company became a public company via an initial public offering.{{cite news | url=https://www.baltimoresun.com/news/bs-xpm-1996-10-18-1996292005-story.html | title=Digex initial stock offering sells 4.5 million shares Md. Internet provider is worth $125.4 million | first=Timothy J. | last=Mullaney | work=The Baltimore Sun | date=October 18, 1996 | url-access=subscription}} The company employed 260 people by that year.{{cite web|first=Bob|last=Starzynski|url=http://www.bizjournals.com/washington/stories/1996/10/14/story3.html|archiveurl=https://web.archive.org/web/20021128034351/http://www.bizjournals.com/washington/stories/1996/10/14/story3.html|title=High-tech firms head to market|website=Washington Business Journal|archivedate=November 28, 2002|date=October 11, 1996|accessdate=November 20, 2023}}
In 1997, the company was acquired by Intermedia Communications, a competitive local exchange carrier based in Tampa, Florida.{{cite news | url=https://www.wsj.com/articles/SB86552768346875000 | title=Intermedia Will Acquire Digex In a $147 Million Stock Swap | work=The Wall Street Journal | date=June 5, 1997 | url-access=subscription}}{{cite web|url=http://www.bizjournals.com/washington/stories/1997/06/02/daily12.html|archiveurl=https://web.archive.org/web/20020926051956/http://www.bizjournals.com/washington/stories/1997/06/02/daily12.html|title=Md.-based Internet company agrees to be acquired|website=Washington Business Journal|archivedate=September 26, 2002|date=June 5, 1997|accessdate=June 6, 2025}}
In 1999, Intermedia completed the partial corporate spin-off of Digex.{{cite news | url=https://www.washingtonpost.com/archive/business/2000/09/06/deal-to-give-worldcom-control-of-digex/63fc5b7b-fe50-411f-b301-0c0a6ae445f3/ | title=Deal to Give WorldCom Control of Digex | first=Yuki | last=Noguchi | newspaper=The Washington Post | date=September 6, 2000}}
In 2000, Microsoft and Compaq invested $100 million in Digex.{{cite news | url=https://www.bizjournals.com/washington/stories/2000/01/10/daily9.html | title=Microsoft, Compaq invest $100M in Digex | work=American City Business Journals | date=January 12, 2000}}
In September 2000, WorldCom acquired Intermedia Communications and gained a majority stake in Digex.{{cite news | url=https://www.wsj.com/articles/SB968004940257434597 | title=WorldCom Closes Deal to Buy Intermedia, Gaining Control of Web-Hosting Business | first1=Nikhil | last1=Deogun | first2=Deborah | last2=Solomon | work=The Wall Street Journal | date=September 5, 2000 | url-access=subscription}}
In 2003, WorldCom acquired the remainder of the company.{{cite news | url=https://www.bizjournals.com/washington/stories/2003/11/17/daily4.html | title=WorldCom buys out Digex in dollar sale | first=Jeff | last=Clabaugh | work=American City Business Journals | date=November 17, 2003}}
Verizon acquired Worldcom in 2006 and integrated the company into Verizon Business.
=Streaming media=
In 1995, Digex launched ISP-TV, a network of linked CU-SeeMe videotelephony servers from multiple ISPs to provide for large-audience webcasts via streaming media.{{cite news | url=https://www.bizjournals.com/wichita/stories/1997/10/13/focus2.html | title=Faster connections should boost use of video calls | first=Esme | last=Neely | work=American City Business Journals | date=October 12, 1997}}
In 1996, ISP-TV began producing original video content in one of the first "cyberstudios" in Laurel, Maryland. Shows included "Angry Girl" a show hosted by Humphrey's wife, "Wired for Cinema" a film review show, "Head" (a beer show) and "Meeks Unfiltered" with MSNBC correspondent Brock Meeks.{{cite magazine | url=https://www.wired.com/1997/05/live-from-cyberspace/ | title=Live, from Cyberspace | first=FRANK | last=JOSSI | magazine=Wired | date=May 1, 1997}}
Digex also streamed Bud Bowl during the Super Bowl for Anheuser-Busch.{{cite press release | url=https://www.tmcnet.com/usubmit/2012/03/23/6209100.htm | title=Internet Pioneer and Co-Founder of Digex, Doug Humphrey, Joins Savtira Advisory Board | publisher=PRWeb | date=March 23, 2012}}
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.
References
{{Reflist}}
{{Dot-com Bubble}}
Category:1991 establishments in Maryland
Category:1996 initial public offerings
Category:2003 disestablishments in Maryland
Category:Telecommunications companies established in 1991
Category:Technology companies disestablished in 2003
Category:Defunct Internet service providers
Category:Defunct companies based in Maryland
Category:Defunct telecommunications companies of the United States