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News
Issue #2001 - 50 (December 2001)
(Updated Dec.
12, 2001)
ACQUISITIONS,
MERGERS & AGREEMENTS
OmniSky Declares Bankruptcy;
EarthLink Buys Assets
American wireless service
provider OmniSky has filed for Chapter 11 bankruptcy protection and
signed a purchase agreement with EarthLink offering all its assets,
including its 32,000 subscribers, to the Internet service provider.
"This filing is intended to protect and maximize the value
of our business for the benefit of all of our stakeholders and to
preserve uninterrupted service for our subscribers until they can be
transitioned to EarthLink," said Patrick McVeigh, OmniSky’s
chairman and CEO.
If the agreement and purchase are approved by the Bankruptcy
Court, EarthLink will acquire OmniSky’s subscribers as well as its
client software, mobile wireless applications platform, browser
proxy, and other components. The acquisition will enable EarthLink
to expand its EarthLink Everywhere Initiative, which it launched a
year ago, offering wireless e-mail service on Research in Motion’s
BlackBerry Wireless Handheld and Motorola TalkAbout two-way T900.
"Our purchase of OmniSky’s subscriber base and key network
assets will represent a significant advancement in our company’s
mobile wireless strategy – well beyond our projected first-year
goals for EarthLink Everywhere." said Lance Weatherby,
executive vice president of the ISP’s EarthLink Everywhere
initiative.
For more information: http://www.omnisky.com
Mobileinfo Comments & Advisory: There
goes another landmark in wireless network services business. Short-term
outlook for stand-alone wireless service providers is not bright. You
must have staying power to survive the stagnant market of 2001.
Note: This news release may contain
forward-looking statements. Readers should take appropriate caution in
developing plans utilizing these products, services and technology
architectures. All trademarks used in this summary are
the property of their respective owners.
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