WorldCom/Compuserve Merger Completed
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JACKSON, Miss., February 2, 1998 - WorldCom, Inc. (WCOM) today announced the merger between WorldCom and CompuServe (CSRV) has been completed and was effective Saturday, January 31 at 5:00 p.m. eastern standard time. In addition, WorldCom agreed to acquire ANS Communications from America Online (AOL), and will sign a five year contract under which WorldCom will become AOL's largest network service provider, in exchange for AOL receiving CompuServe's Interactive Services Division and $175 million in cash. WorldCom will retain the CompuServe Network Services (CNS) division.
As a result of the merger, each share of CompuServe stock was converted into the right to receive 0.40625 shares of WorldCom common stock, and was accounted for as a purchase accounting transaction.
"We look forward to a long and mutually beneficial relationship with AOL," said John Sidgmore, vice chairman and chief operations officer of WorldCom. "We are excited about the closing of these transactions and the potential that CompuServe Network Services and ANS bring to WorldCom. We wholeheartedly welcome the ANS and CNS employees to WorldCom."