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| {{Short description|Global web hosting provider headquartered in the U.S.}} | |||
| '''Verio''' is an ] in the ]. Founded in 1996 in ], it is currently a division of ] which purchased it in ]. Verio performed the first national consolidation in the ISP industry, and its sale was the largest cash buy-out of a high-tech company by a foreign entity in United States history requiring approval by Congress and the President. | |||
| {{Refimprove|date=May 2007}} | |||
| Initially, Verio raised funds with which to purchase regional small "mom and pop" ISPs around the USA and ]. It was funded by the principal founders, private investors, NTT, and institutional investors in a private placement raising $250 million dollars. The concept was to "roll up" small ISPs into one large national ISP and achieve economies of scale with a single internet infrastructure, a single branded product line, a unified support structure, and so forth. This type of regional rollup into a national brand is common in many industries, but was the first of its kind on a national scale in the newly-evolving ISP industry. | |||
| {{Infobox company| | |||
| |name = Verio Inc. | |||
| |logo=Verio_logo.svg | |||
| |foundation = 1996 | |||
| |location = 8005 S Chester St.<br /> Suite 200<br /> Centennial, CO 80112 | |||
| |key_people = Hideyuki Yamasawa, president and chief executive officer | |||
| |industry = ] | |||
| |parent = ] | |||
| |homepage = | |||
| | | |||
| }} | |||
| '''Verio''' is a global web hosting provider headquartered in the ]. Incorporated in 1996 in ], ], it is a wholly owned subsidiary of ], which acquired the company in 2000. Verio was formed from a consolidation of over 200 smaller ]s (ISPs)<ref>{{Cite web |url=http://www.viaverio.com/?page_id=134 |title=ViaVerio » Partner Program |access-date=2009-11-05 |archive-url=https://web.archive.org/web/20100112044926/http://www.viaverio.com/?page_id=134 |archive-date=2010-01-12 |url-status=dead }}</ref> and ]. | |||
| By the year 2000, Verio had purchased almost fifty small ISPs, most in the USA but some in Europe, ranging in price from under a million dollars (USD) to over 100 million dollars per ISP. During this time Verio went public on the ], trading under the symbol VRIO. In early 2000 Verio was sold to NTT at a per-share price of over $60, a total cost slightly exceeding $5 billion. Because NTT is a Japanese government owned company, foreigners are not allowed to own NTT stock (according to Japanese law) and therefore the buy-out was a 100% cash deal. This was and still remains the largest cash transaction for a high-tech company in United States history. The United States Congress held hearings over the transaction to ensure it did not violate national security concerns, because the Verio Internet backbone was at the time one of the top five in the world, carrying a large amount of potentially sensitive data. | |||
| The Justice Department and the F.B.I. expressed concern that the Japanese government, which owned 53 percent of NTT at the time, could gain access to classified information should the U.S. government use Verio's network to tap Internet communications during an investigation. To placate these concerns, NTT agreed to form a separate division within the company staffed only by U.S. citizens to handle any work in support of government investigations. As a result, the Federal Commission on Foreign Investment in the United States recommended that President Clinton allow the $5.5 billion purchase to proceed. The deal also prompted scrutiny of Japan's openness to foreign telecom competitors. | |||
| ==History== | |||
| Within months of the announced deal, the NASDAQ stock market crashed in the spring of 2000 in the dot-com bubble burst. The share price of Verio went from a high in the 80s just before the announced buy-out to single digits, however the agreed price of around $60 remained and NTT and Verio completed the transaction by the fall of 2000. | |||
| Verio was founded by Darin Brannan and Justin Jaschke, and several senior management team members subsequently joined from OneComm/Nextel. The company idea, including the initial business plan and pitch deck, began in the halls of Norwest Venture Partners after several months of market diligence and target acquisition discussions. Venture Capitalists George J. Still, Jr. and Darin Brannan from Norwest Venture Partners ultimately teamed with Steven C. Halstedt from the Centennial Funds and Steve Schovee from Telecom Partners to syndicate and launch the business in 1996. | |||
| In order to validate the strategy and raise capital, Brett Sharenow and Lynn Morris from Morris Associates were hired to create the first detailed engineering-driven financial model consisting of ISPs, core network infrastructure, and server farms, allowing Verio to raise substantial funds ($1.1 billion) from principal founders, several top tier VC's, NTT and institutional investors with which to purchase target acquisitions and build out centralized back office, support, national sales and infrastructure. | |||
| Over the course of the next few years Verio abandoned the lower revenue consumer market and focused primarily on the more lucrative business to business web hosting market. Most of the original infrastructure and employees it had purchased were disbanded or consolidated into a few large centralized data centers. | |||
| By the year 2000, Verio had purchased 55 ISP/Hosting companies, most in the U.S. but some in Europe. During this time Verio went public on the ], trading under the symbol VRIO, with a market value exceeding $1 billion. Shortly after the IPO, in early 2000, Verio was sold to NTT at a per-share price of $73, a total cost slightly exceeding $5 billion. Because NTT was a 53% ]-owned company, foreigners were not allowed to own NTT stock, according to Japanese law at the time,<ref>, Keith Dawson, Industry Standard's Media Grok email newsletter, May 09 2000.</ref> and therefore the buy-out was a 100% cash deal, making it one of the highest grossing deals of the dotcom era. The United States Congress held hearings over the transaction to ensure it did not violate national security concerns. The ] and the ] expressed concern that the Japanese government, which owned 53 percent of NTT at the time, could gain access to classified information should the U.S. government use Verio's network to tap Internet communications during an investigation. To placate these concerns, NTT agreed to form a separate division within the company staffed only by U.S. citizens to handle any work in support of government investigations. As a result, the ] recommended that President Clinton allow the $5.5 billion purchase to proceed. The deal also prompted scrutiny of Japan's openness to foreign telecom competitors. | |||
| Shortly after the announced deal, the NASDAQ stock market crashed in the spring of 2000 in the ] burst. The agreed price of $73 remained and NTT and Verio completed the transaction by the fall of 2000. | |||
| Verio continues to operate as a division of NTT using the brandname NTT/VERIO. | |||
| Verio continues to operate as a wholly owned subsidiary of ]. | |||
| At the end of 2005, the backbone and some dedicated hosting centers moved to NTT America, with the web hosting business staying with Verio. The European arm, Verio Europe, was moved in its entirety to NTT Europe. In October 2006, Verio Europe was renamed ]. | |||
| In late May 2015, Verio Shared SMB hosting division, as a business unit of NTT America, Inc. (“NTT America”), was sold to The Endurance International Group, Inc. Endurance continues to provide web hosting, email and domain name services under the Verio name.<ref>{{Cite web|url=http://verio-transition.com/faqs/|title=Frequently Asked Questions | Verio Transition Information Site}}</ref><ref>{{Cite web|url=https://www.thewhir.com/web-hosting-news/eigs-acquisition-of-verio-and-site5-nets-86000-new-subscribers|title = Web Hosting Talk - the largest, most influential web hosting community on the Internet}}</ref> | |||
| ==Some of the ISPs purchased by Verio== | ==Some of the ISPs purchased by Verio== | ||
| Verio was initially built on a business model known as a "]", composed entirely of smaller companies operating under the Verio ]. By the year 2000, Verio had purchased more than 50 small ISPs and hosting companies,<ref> {{webarchive |url=https://web.archive.org/web/20070927021727/http://www.morganstanley.com/institutional/techresearch/pdfs/internet_data_services_part4.pdf |date=September 27, 2007 }}, ], 11 August 1999, p. 30.</ref> most in the US but also in Europe, ranging in price from under US$1 million to over US$100 million per ISP. These companies were often mature and well-known brand names in their local markets — more well known than Verio — and often continued to operate with a great deal of local autonomy even after purchase by Verio. Some of the companies purchased by Verio were leading pioneers in the internet industry (Digital Nation, NorthWestNet), representing the first wave of commercial ISP access and hosting in regional markets around the US and Europe. | |||
| * Access One (accessone.com) Western Washington | |||
| * AimNet (aimnet.com) Santa Clara, Northern California | |||
| Some<ref></ref><ref></ref><ref></ref> | |||
| * ] (atmnet.net) San Diego, Southern California | |||
| of these companies included: | |||
| * Best Net (best.net) | |||
| * Branch Net (branch.net, branch.com) Ann Arbor, Michigan | |||
| * Access One (accessone.com), Western Washington | |||
| * CCNet (ccnet.com) Walnut Creek, Northern California | |||
| * AimNet (aimnet.com), Santa Clara, California | |||
| * Clark Internet Services (]) (clark.net, clarknet.net, smartconnect.net), ] | |||
| * |
* ] (atmnet.net), San Diego, California | ||
| * Best Internet Communications, Mountain View, California | |||
| * Computing Engineers, Inc. (dba ]) (wwa.com, wwa.net), ] | |||
| * Branch Net (branch.net, branch.com), Ann Arbor, Michigan | |||
| * Florida Internet (flinet.com) South Florida | |||
| * CCNet (ccnet.com) Walnut Creek, California | |||
| * Global Enterprise Services (ges.net, ges.com) New Jersey | |||
| * ] (clark.net, clarknet.net), Columbia, Maryland | |||
| * Hiway Technologies (hiway.com, hiway.net, hway.com, hway.net, rapidsite.net, rapidsite.com) Boca Raton, Florida | |||
| * Communique (cmq.net), Gulf South | |||
| * Internet Information Services (IIS), ] | |||
| * Compute Intensive, Inc. | |||
| * Internet Interstate (intr.net) Bethesda, Maryland | |||
| * CompuTech, Spokane, Washington | |||
| * Inetnet Now (inetnow.net) Atlanta, Georgia | |||
| * Computing Engineers, Inc. (dba ]) (wwa.com, wwa.net), Chicago, Illinois | |||
| * iServer (iserver.net, iserver.com, secure.net) Orem, Utah | |||
| * |
* Digital Nation (dn.net), Alexandria, Virginia | ||
| * |
* Florida Internet (flinet.com), South Florida | ||
| * Global Enterprise Services (ges.net, ges.com, jvnc.net), New Jersey | |||
| * MagicNet (magicnet.net) Florida | |||
| * Global Internet Network Services (globalinternet.com), formerly ] (mid.net), Lincoln, Nebraska | |||
| * MidNet (mid.net) Kansas | |||
| * |
* Hiway Technologies (hiway.com/.net, hway.com/.net, rapidsite.com/.net), Boca Raton, Florida | ||
| * Internet Engineering Associates, Inc. | |||
| * National Knowledge Network (NKN) (nkn.net, nkn.com, nkn.edu) Dallas, Texas | |||
| * Internet Now, Inc. (inetnow.net), Atlanta, Georgia | |||
| * Network Intensive (ni.net, compute.com) Irvine, Southern California | |||
| * Internet Servers, Inc. (iserver.net, iserver.com, secure.net), Orem, Utah | |||
| * Northwest Network Services (]), ] | |||
| * Long Island Internet (li.net), Long Island, New York (acquired in 1998)<ref>{{cite web | url=https://libn.com/2003/02/14/verio-sells-li-isp-accounts-to-i2000/ | title=Verio sells LI ISP accounts to I-2000 | Long Island Business News | date=14 February 2003 }}</ref> | |||
| * NS Net (ns.net) Sacramento, California | |||
| * |
* MagicNet (magicnet.net), Orlando, Florida | ||
| * Monumental Network Services, (monumental.com/.net, mns.com/.net, mnsinc.com/.net), Chantilly, Virginia | |||
| * Pacific Rim (pacificrim.com, pacificrim.net) Bellingham, Washington | |||
| * National Knowledge Network (NKN) (nkn.net, nkn.com, nkn.edu), Dallas, Texas | |||
| * PacketWorks (packet.net, packetworks.net) Florida | |||
| * Network Intensive (ni.net, compute.com), Irvine, California | |||
| * Pioneer Global (pioneerglobal.com, pn.net, wing.net) New England | |||
| * New York Net (new-york.net), New York City | |||
| * PrepNet (prep.net, prepnet.net, prepnet.com) ] | |||
| * NorthWestNet (nwnet.net), Bellevue/Seattle, Washington | |||
| * QualNet/IAGNet (qual.net, qualnet.net, iagnet.net, cic.net, cyberdrive.net, harborcom.com) ] (+17 Midwestern Cities) | |||
| * |
* NS Net (ns.net), Sacramento, California | ||
| * |
* OnRamp (onramp.net), Dallas, Texas | ||
| * Pacific Rim (pacificrim.com, pacificrim.net), Bellingham, Washington | |||
| * ServiceTech (servtech.com) New York, New York | |||
| * |
* PacketWorks (packet.net), Tampa Bay, Florida | ||
| * Pioneer Global (pioneerglobal.com, pn.net, wing.net), New England | |||
| * SigNet (sig.net) Austin, Texas | |||
| * |
* PrepNet (prep.net, prepnet.net, prepnet.com), Pittsburgh, Pennsylvania | ||
| * QualNet/IAGNet (qual.net, qualnet.net, iagnet.net, cic.net, cyberdrive.net, harborcom.com), Cleveland, Ohio | |||
| * Starnet (starnet.net) Ohio | |||
| * |
* RAINet (rain.net, rain.com), Oregon | ||
| * RustNet (rust.net), Michigan | |||
| * Surf Networks (surfnetwork.net, p3.net, dynanet.net) Philadelphia | |||
| * ServiceTech (servtech.com), Rochester, New York | |||
| * Tab Net (tab.net, tabnet.net, criticalpath.net, cp.net) Napa Valley, California | |||
| * SesquiNet (sesqui.net), Houston, Texas | |||
| * TerraNet (terra.net, terranet.net, terranet.com) New England | |||
| * SigNet (sig.net), Austin, Texas | |||
| * West Coast Online (wco.com) Mill Valley, Northern California | |||
| * SmartConnect (smartconnect.net), McLean, Virginia | |||
| * Spacelab (spacelab.net, mxol.com), New York City | |||
| * Starnet (starnet.net), St. Louis, Missouri | |||
| * Structured (structured.net, sns-access.com), Oregon | |||
| * Surf Networks (surfnetwork.net, p3.net, dynanet.net), Philadelphia, Pennsylvania | |||
| * Tab Net (tab.net, tabnet.net, criticalpath.net, cp.net), Napa Valley, California | |||
| * TerraNet (terra.net, terranet.net, terranet.com), New England | |||
| * Web Communications (webcom.com), Santa Cruz, California | |||
| * West Coast Online (wco.com), Rohnert Park, California | |||
| * WingNet (wingnet.com), Woburn, Massachusetts | |||
| * WWW-Service, Regensburg, Germany | |||
| == See also == | |||
| * '']'' | |||
| ==Notes== | |||
| {{reflist}} | |||
| ==External links== | |||
| *Gohring, Nancy. , '']'', May 1, 2007 | |||
| {{NTT}} | |||
| {{Dot-com Bubble}} | |||
| ==External link== | |||
| * | |||
| ] | ] | ||
| ] | |||
| ] | |||
| ] | |||
| ] | |||
| ] | |||
Latest revision as of 22:10, 21 September 2024
Global web hosting provider headquartered in the U.S. | This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "Verio" – news · newspapers · books · scholar · JSTOR (May 2007) (Learn how and when to remove this message) |
 | |
| Industry | Web hosting |
|---|---|
| Founded | 1996 |
| Headquarters | 8005 S Chester St. Suite 200 Centennial, CO 80112 |
| Key people | Hideyuki Yamasawa, president and chief executive officer |
| Parent | NTT Communications |
| Website | www.verio.com |
Verio is a global web hosting provider headquartered in the United States. Incorporated in 1996 in Denver, Colorado, it is a wholly owned subsidiary of Nippon Telegraph and Telephone (NTT) Communications, which acquired the company in 2000. Verio was formed from a consolidation of over 200 smaller Internet service providers (ISPs) and web hosting services.
History
Verio was founded by Darin Brannan and Justin Jaschke, and several senior management team members subsequently joined from OneComm/Nextel. The company idea, including the initial business plan and pitch deck, began in the halls of Norwest Venture Partners after several months of market diligence and target acquisition discussions. Venture Capitalists George J. Still, Jr. and Darin Brannan from Norwest Venture Partners ultimately teamed with Steven C. Halstedt from the Centennial Funds and Steve Schovee from Telecom Partners to syndicate and launch the business in 1996.
In order to validate the strategy and raise capital, Brett Sharenow and Lynn Morris from Morris Associates were hired to create the first detailed engineering-driven financial model consisting of ISPs, core network infrastructure, and server farms, allowing Verio to raise substantial funds ($1.1 billion) from principal founders, several top tier VC's, NTT and institutional investors with which to purchase target acquisitions and build out centralized back office, support, national sales and infrastructure.
By the year 2000, Verio had purchased 55 ISP/Hosting companies, most in the U.S. but some in Europe. During this time Verio went public on the NASDAQ, trading under the symbol VRIO, with a market value exceeding $1 billion. Shortly after the IPO, in early 2000, Verio was sold to NTT at a per-share price of $73, a total cost slightly exceeding $5 billion. Because NTT was a 53% Japanese government-owned company, foreigners were not allowed to own NTT stock, according to Japanese law at the time, and therefore the buy-out was a 100% cash deal, making it one of the highest grossing deals of the dotcom era. The United States Congress held hearings over the transaction to ensure it did not violate national security concerns. The Justice Department and the Federal Bureau of Investigation expressed concern that the Japanese government, which owned 53 percent of NTT at the time, could gain access to classified information should the U.S. government use Verio's network to tap Internet communications during an investigation. To placate these concerns, NTT agreed to form a separate division within the company staffed only by U.S. citizens to handle any work in support of government investigations. As a result, the Committee on Foreign Investment in the United States recommended that President Clinton allow the $5.5 billion purchase to proceed. The deal also prompted scrutiny of Japan's openness to foreign telecom competitors.
Shortly after the announced deal, the NASDAQ stock market crashed in the spring of 2000 in the dot-com bubble burst. The agreed price of $73 remained and NTT and Verio completed the transaction by the fall of 2000.
Verio continues to operate as a wholly owned subsidiary of NTT Communications.
At the end of 2005, the backbone and some dedicated hosting centers moved to NTT America, with the web hosting business staying with Verio. The European arm, Verio Europe, was moved in its entirety to NTT Europe. In October 2006, Verio Europe was renamed NTT Europe Online.
In late May 2015, Verio Shared SMB hosting division, as a business unit of NTT America, Inc. (“NTT America”), was sold to The Endurance International Group, Inc. Endurance continues to provide web hosting, email and domain name services under the Verio name.
Some of the ISPs purchased by Verio
Verio was initially built on a business model known as a "rollup", composed entirely of smaller companies operating under the Verio brand name. By the year 2000, Verio had purchased more than 50 small ISPs and hosting companies, most in the US but also in Europe, ranging in price from under US$1 million to over US$100 million per ISP. These companies were often mature and well-known brand names in their local markets — more well known than Verio — and often continued to operate with a great deal of local autonomy even after purchase by Verio. Some of the companies purchased by Verio were leading pioneers in the internet industry (Digital Nation, NorthWestNet), representing the first wave of commercial ISP access and hosting in regional markets around the US and Europe.
Some of these companies included:
- Access One (accessone.com), Western Washington
- AimNet (aimnet.com), Santa Clara, California
- ATMNet (atmnet.net), San Diego, California
- Best Internet Communications, Mountain View, California
- Branch Net (branch.net, branch.com), Ann Arbor, Michigan
- CCNet (ccnet.com) Walnut Creek, California
- ClarkNet (clark.net, clarknet.net), Columbia, Maryland
- Communique (cmq.net), Gulf South
- Compute Intensive, Inc.
- CompuTech, Spokane, Washington
- Computing Engineers, Inc. (dba WorldWide Access) (wwa.com, wwa.net), Chicago, Illinois
- Digital Nation (dn.net), Alexandria, Virginia
- Florida Internet (flinet.com), South Florida
- Global Enterprise Services (ges.net, ges.com, jvnc.net), New Jersey
- Global Internet Network Services (globalinternet.com), formerly MIDnet (mid.net), Lincoln, Nebraska
- Hiway Technologies (hiway.com/.net, hway.com/.net, rapidsite.com/.net), Boca Raton, Florida
- Internet Engineering Associates, Inc.
- Internet Now, Inc. (inetnow.net), Atlanta, Georgia
- Internet Servers, Inc. (iserver.net, iserver.com, secure.net), Orem, Utah
- Long Island Internet (li.net), Long Island, New York (acquired in 1998)
- MagicNet (magicnet.net), Orlando, Florida
- Monumental Network Services, (monumental.com/.net, mns.com/.net, mnsinc.com/.net), Chantilly, Virginia
- National Knowledge Network (NKN) (nkn.net, nkn.com, nkn.edu), Dallas, Texas
- Network Intensive (ni.net, compute.com), Irvine, California
- New York Net (new-york.net), New York City
- NorthWestNet (nwnet.net), Bellevue/Seattle, Washington
- NS Net (ns.net), Sacramento, California
- OnRamp (onramp.net), Dallas, Texas
- Pacific Rim (pacificrim.com, pacificrim.net), Bellingham, Washington
- PacketWorks (packet.net), Tampa Bay, Florida
- Pioneer Global (pioneerglobal.com, pn.net, wing.net), New England
- PrepNet (prep.net, prepnet.net, prepnet.com), Pittsburgh, Pennsylvania
- QualNet/IAGNet (qual.net, qualnet.net, iagnet.net, cic.net, cyberdrive.net, harborcom.com), Cleveland, Ohio
- RAINet (rain.net, rain.com), Oregon
- RustNet (rust.net), Michigan
- ServiceTech (servtech.com), Rochester, New York
- SesquiNet (sesqui.net), Houston, Texas
- SigNet (sig.net), Austin, Texas
- SmartConnect (smartconnect.net), McLean, Virginia
- Spacelab (spacelab.net, mxol.com), New York City
- Starnet (starnet.net), St. Louis, Missouri
- Structured (structured.net, sns-access.com), Oregon
- Surf Networks (surfnetwork.net, p3.net, dynanet.net), Philadelphia, Pennsylvania
- Tab Net (tab.net, tabnet.net, criticalpath.net, cp.net), Napa Valley, California
- TerraNet (terra.net, terranet.net, terranet.com), New England
- Web Communications (webcom.com), Santa Cruz, California
- West Coast Online (wco.com), Rohnert Park, California
- WingNet (wingnet.com), Woburn, Massachusetts
- WWW-Service, Regensburg, Germany
See also
Notes
- "ViaVerio » Partner Program". Archived from the original on 2010-01-12. Retrieved 2009-11-05.
- "Late Starter NTT Moves on U.S., Europe", Keith Dawson, Industry Standard's Media Grok email newsletter, May 09 2000.
- "Frequently Asked Questions | Verio Transition Information Site".
- "Web Hosting Talk - the largest, most influential web hosting community on the Internet".
- The Internet Data Services Report Archived September 27, 2007, at the Wayback Machine, Morgan Stanley, 11 August 1999, p. 30.
- Verio Inc. Consolidates Affiliates, Reinforces Position as Leading National Internet Company for Business and Institutions | Business Wire | Find Articles at BNET.com
- SEC Info - Verio Inc - 10-K/A - For 12/31/99
- Verio grows big with small clients - East Bay Business Times:
- "Verio sells LI ISP accounts to I-2000 | Long Island Business News". 14 February 2003.
External links
- Gohring, Nancy. "Verio to shut off controversial Web site", The Washington Post, May 1, 2007
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