Global Crossing’s business deals are one of the most talked about topics in the business domain. The very same year that the deals were made, the company filed for bankruptcy. This article will give an idea about the deals and their consequences.
Global Crossing’s business deals made during the start of the new millennium raised eyebrows of many analysts. According to financial, as well as business, analysts, these deals could have been far better ones if they were done with other internet companies present in the market at the time.
First Deal between Global Crossing and Withit.com:
According to this deal, the online broadcasting services of Withit.com would be sold to Global Crossing.
Second Deal between Global Crossing and Withit.com:
The second deal was struck between the two companies during the month of November, 2001. According to this, Withit.com was hired by Global Crossing for consulting purposes on the viability issue of a particular stock trading system known as “IPC Trading Systems.”
During the first quarter of 2000, Global Crossing started to face financial problems and consequently its stock prices fell to a mere twenty five US dollars. The main reason behind such a dramatic fall is attributed to the business deals mentioned above.
Another business deal of Global Crossing that is under the scanner is the decision of swapping rights of network access with other internet companies like Withit.com. According to skeptics, this business deal was done in order to hide the real financial picture of the company from its investors.
Global Crossing’s business deals that were made during 2001 came under review when the company filed for bankruptcy in the same year. Another company that came under the scanner was the company of Joseph Perrone’s son called Withit.com, which had business ties with Global Crossings.