Worldcom, Inc. And Sprint Corporation Essay - 911 Words

Introduction On October 4, 1999, WorldCom, Inc. and Sprint announced their plans to merge of long-distance and telecommunication markets. It was $129 million deal, which raised concerns regarding how the merger of the two largest Internet backbone providers could affect the Internet markets. According to the case description, at the time of the agreement, the two companies were the second and third largest traditional long-distance telecommunication companies in the United States, and the first and second largest providers of Internet backbone network service both domestically and internationally. Although many mergers can be beneficial, it can also effect negatively to the consumers. In fact, the proposed merger of WorldCom, Inc. and Sprint would be the case in point. WorldCom, Inc. and Sprint Corporation According to WorldCom, Inc. and Sprint case packet by Baye and Scholten, WorldCom, Inc. is formerly known as MCI WorldCom, Inc. and is one of the largest global telecommunications providers with operating in more than 65 countries. As measured by revenues, it is also second largest provider of date network services. Sprint Corporation, in the other hand, is also one of largest telecommunications providers in United States, serving more than 17 million residential and business customers. In addition, Sprint Corporation has been competing head–to-head against WorldCom, Inc. in many markets in which the two companies operate. Overview of history background The proposedShow MoreRelatedOligopoly: Monopoly and Demand Curve1451 Words   |  6 Pagesas banking. Differentiated oligopolies, where the products have some differences, are found in consumer goods industries, such as cars, biscuits, beer and electrical appliances. There is however another oligopoly in which the manner of the corporation or industry is quite familiar to that of a monopoly. This oligopoly is termed collusive. A collusive oligopoly has the ability to behave in the manner of a monopoly and no longer faces a kink in the demand curve. With this type of oligopoly thereRead MoreEssay on Oligopoly1442 Words   |  6 Pagessuch as banking. Differentiated oligopolies, where the products have some differences, are found in consumer goods industries, such as cars, biscuits, beer and electrical appliances. There is however another oligopoly in which the manner of the corporation or industry is quite familiar to that of a monopoly. This oligopoly is termed collusive. A collusive oligopoly has the ability to behave in the manner of a monopoly and no longer faces a kink in the demand curve. With this type of oligopoly thereRead MoreWorldcom Case Study1535 Words   |  7 PagesWorldCom Case Study: Lack of Leadership, Lack of Ethics Emily Fearnow ORG 500- Foundations of Effective Management Colorado State University – Global Campus Dr. Cheryl Lentz May 15, 2011 WorldCom Case Study: Lack of Leadership, Lack of Ethics A multitude of choices made by executives at WorldCom led to the ultimate demise of the company as it was previously known, the employees and their livelihoods’, and the trust of the American people. In a time when corporationsRead MoreA Short Note On The, Inc.1838 Words   |  8 PagesCI, Inc., was an U.S.-based telecommunications company founded in 1983 by Bernard Ebbers. From 1995 to 2001, WorldCom began the acquisitions of over sixty competitors. By 2001, it owned one third of the total cables in the United States. It was the second-largest long-distance phone carrier (after AT@T) in the United States until a fatal accounting scandal that gave rise to the filing of bankruptcy in 2002. It owned a 45,000 miles nationwide network and provided cellular data, Internet besides widespreadRead MoreManagement Theories And Ethical Theories2085 Words   |  9 Pagesaccounting practices. Cooper battles with the Board on exposing the company and letting everyone know what is g oing. Bernie Ebbers is the CEO of the company; he has built up the company to be the super-giant it has become. David Myers is the controller of WorldCom that allowed these practices to go on and would be the nail on the coffin to help Cynthia Cooper close her case on the accounting procedures that were used and how everything happened. Many other people had a role in exposing and operating this scamRead MoreAccounting Fraud at Worldcom8726 Words   |  35 PagesKAPLAN DAVID KIRON Accounting Fraud at WorldCom WorldCom could not have failed as a result of the actions of a limited number of individuals. Rather, there was a broad breakdown of the system of internal controls, corporate governance and individual responsibility, all of which worked together to create a culture in which few persons took responsibility until it was too late. — Richard Thornburgh, former U.S. attorney general1 On July 21, 2002, WorldCom Group, a telecommunications company withRead MoreAudit and Wall Street13173 Words   |  53 PagesTHE ACCOUNTING FRAUD @ WORLDCOM: THE CAUSES, THE CHARACTERISTICS, THE CONSEQUENCES, AND THE LESSONS LEARNED by JAVIRIYAH ASHRAF A Thesis submitted in partial fulfillment of the requirements for Honors in the Major Program in Accounting in the College of Business Administration and in The Burnett Honors College at the University of Central Florida Orlando, Florida Spring Term 2011 Thesis Chair: Dr. Pamela Roush Abstract The economic prosperity of the late 1990s was characterizedRead MoreWorldcom Essay2876 Words   |  12 PagesWorldcom Question 1. A summary of Worldcom, historical data and background. Worldcom will soon be one of the largest telecommunication companies on the planet. Worldcom has built its global presence through a multitude of financial acquisitions and investments, highly successful product marketing programs, while making business alliances with many of the most successful companies in the technology and telecommunications sector. Worldcom (stock symbol: WCOM), formerly MCI, WorldcomRead MoreAccounting Fraud And The Financial Fraud1761 Words   |  8 PagesIntroduction WorldCom CEO Bernard Ebbers, former partner said â€Å"He didn’t know anything about the long distance or telephone business, but he knew how to read numbers, he was a number cruncher.†(â€Å"Inside†) This should have been a warning sign to those investing in the company that Ebbers wasn’t the best choice to run the 2nd biggest telecom company in America. WorldCom was just one of many accounting frauds that took place in the early 2000’s. But unfortunately that trend of dishonest accounting didn’tRead MoreMobile Phones And The Cell Phone Industry4055 Words   |  17 Pageswill merge. The common objective between companies that merge are not only the extensive demand of technology, but also the effective implementation of wireless amenities which are needed to stay lucrative. One merger that occurred in 1995 was the Sprint Nextel merger. This merger has come to represent a failed merger. In order to understand mergers within the cell phone industry this merger will be examined. Readers of this paper will learn about the histories of both companies, the details of the