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News tagged: Covad Communications


Cablevision has agreed to join the other ISPs who have signed on to follow NY Attorney General Andrew Cuomo’s new “code of conduct” for getting rid of child porn on the Internet. As we’ve noted the new rules don’t actually change a lot for the ISPs; they’re supposed to block newsgroups and make sure to pull any child porn off of the Internet as fast as possible which most of them were already doing. Cablevision has also added a sublink to the site which allows people to easily report child porn if they see it online. Covad has also agreed to comply with the AG’s “voluntary-but-enforceable” rules after receiving a subpoena about the issue but the company is still working on exactly how it will have to change (if at all) to enforce the code.

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A struggling VoIP company everyone thought would be dead by now partners with a CLEC everyone thought would be dead by now to resell broadband. Sound like a good idea to you? Vonage, still trying to dig out of their financial hole, has announced they've partnered with Covad to resell DSL service.
story continues..

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Earlier this month, a Covad insider tipped us off to the fact that the CLEC was shopping itself around to potential sugar daddies, with names like AT&T, Sprint and even Best Buy being tossed around as acquisition partners. In the end, however, it appears that Covad got the best deal from Platinum Equity, who will pay $304 million (or $1.02 per share) for the CLEC. Covad CEO Charles Hoffman waxes optimistic in the company press release:
Platinum's approach will bolster the successful execution of Covad's business strategy while providing the resources and support necessary for sustained growth. We believe that the resulting increased market competitiveness, improved capital structure, and enhanced product and network capabilities best position our customers, partners, and employees for the future.
The deal, barring regulatory approval, should close in the second quarter of next year.

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