A Public Company
In 1996, Prodigy was acquired by the former founders of Boston Technology and their new firm International Wireless, with Mexican businessman Carlos Slim Helú, a principal owner of Telmex, as a minority investor. IBM and Sears sold their interests to this group for $200 million. It was estimated that IBM and Sears had invested more than $1 billion in the service since its founding.
Prodigy continued to operate as before, while Telmex provided Internet access under the Prodigy brand in Mexico and other parts of Latin America, with some services being provided by Prodigy Communications in the US.
Prodigy went public in 1999, trading on the NASDAQ under the symbol PRGY. Later that year, Prodigy entered a strategic partnership with SBC Communications wherein Prodigy would provide Internet services and SBC would provide exclusive sales opportunities and network, particularly DSL, facilities. The strategic partnership also gave SBC a 43% ownership interest in Prodigy.
On November 6, 2001, SBC purchased 100% interest in Prodigy and brought it private. On November 14, 2001, SBC and Yahoo! announced the strategic alliance to create the co-branded SBC Yahoo!. Sometime thereafter, SBC ceased offering new Prodigy accounts, and customers were encouraged to migrate to the SBC Yahoo! product line to the sbc.yahoo.com internet portal, while being able to keep their {username}@Prodigy.net email addresses.
Read more about this topic: Prodigy (online Service)
Famous quotes containing the words public and/or company:
“The urgent consideration of the public safety may undoubtedly authorise the violation of every positive law. How far that or any other consideration may operate to dissolve the natural obligations of humanity and justice, is a doctrine of which I still desire to remain ignorant.”
—Edward Gibbon (1737–1794)
“Mrs. Mirvan says we are not to walk in [St. James’s] Park again next Sunday ... because there is better company in Kensington Gardens; but really, if you had seen how every body was dressed, you would not think that possible.”
—Frances Burney (1752–1840)