AT&T; Plans Big Infusion for Network
AT&T; Corp. plans to invest $250 million in its network and join companies including Sun Microsystems Inc. and Hewlett-Packard Co. to offer new services for businesses that rent software to others on the Internet. The program, called Ecosystem for ASPs, will use the network of AT&T;, the largest U.S. long-distance telephone company, to provide faster, easier Web access and off-site data storage to companies, such as Intelligroup Inc., AT&T; spokeswoman Janet Wyles said. AT&T; is working to reduce its reliance on long-distance phone service as the $90-billion-a-year market becomes more competitive and per-minute prices and margins drop. On the NYSE, New York-based AT&T;’s shares fell 63 cents to $50.38 and Hewlett-Packard fell 25 cents to $108.50. Sun Microsystems fell $1.69 to $76.94 on Nasdaq.
TheGlobe.com Shuffling: The co-founders and co-chief executives of TheGlobe.com, Stephan Paternot and Todd Krizelman, said they’re stepping down as the company reported a loss for the fourth quarter. Paternot and Krizelman will remain with the company as advisors and directors. In the latest quarter, TheGlobe posted a pro forma loss of $11.1 million, or 41 cents a share, compared with a loss of $4.5 million, or 26 cents, a year ago. The latest results exclude special charges and gains. Revenue jumped 131% to $6.4 million. The company also said Chief Operating Officer Dean Daniels was named to the additional post of president. TheGlobe said it expects to announce a new CEO during the second quarter. Its shares closed up 63 cents at $9 on Nasdaq.
