C&W on the Prowl
The British powerhouse bought Web hosting and content distribution company Digital Island for $340 million last week.The British powerhouse bought Web hosting and content distribution company Digital Island for $340 million last week. The acquisition did not squelch industry talk that Cable & Wireless which owns MCIs Internet backbone and views the U.S. as both a strategic market and an incubator of new Internet services is on the prowl to buy more companies. Analysts identified potential acquisition targets such as managed hosters like DataReturn, Genuity and NaviSite; colocation giant Exodus Communications; managed services provider Loudcloud; and teetering Internet services concern PSINet. Sources said Exodus would be the least probable acquisition, given its largely real-estate business model.
Cable & Wireless will likely be careful not to purchase another troubled company such as MCIs backbone unit, which presented business and technical integration challenges.