Internet America

Internet America was a United States Internet service provider focused on the Texas market. Founded in 1995 by Robert Maynard Jr., the company emerged during the rapid expansion of consumer and business Internet access in the 1990s. It initially operated as an Internet access provider and later used acquisitions to broaden its subscriber base, technical capabilities, and geographic reach. The company became publicly traded through an initial public offering on December 11, 1998, during the period when Internet-related companies attracted substantial investor enthusiasm. Its shares rose 14.4 percent on the first day of trading. Internet America continued an acquisition-led expansion in 1999, purchasing Compunet for approximately $2 million, acquiring CyberRamp, buying NeoSoft for $7.3 million in cash, acquiring INTX.Networking LLC from its founder Sardar Biglari, and purchasing PDQ.net in a stock transaction valued at approximately $32 million. After these transactions, the combined company was reported to have approximately 145,000 subscribers. The company’s market history reflected the volatility of the dot-com era. In December 1999, its stock price doubled in a single day without a specific news event being identified as the cause. As the technology market deteriorated, Internet America’s public-market position weakened. Its shares were removed from the NASDAQ listing on August 14, 2001. The business subsequently entered a more restrained operating phase, including a reduction in headcount from 109 to 70 and a reduction in occupied office space in 2003. Internet America continued to pursue selective acquisitions after the dot-com collapse. It acquired My Linux ISP in November 2004 and 2Fast Communications in January 2006. Glen Blackmon became president and chief operating officer in October 2005, although he resigned from the company in December 2006. The company also relocated its headquarters from Dallas to Houston in 2006. In November 2008, Internet America announced a proposed merger with KeyOn Communications Holdings. The transaction was terminated in February 2009, leaving Internet America independent. Later in 2009, the company appointed former Texas governor Mark White as special counsel for development of broadband networks in rural areas, linking the company’s activities to efforts to expand broadband access beyond densely served markets. Internet America ultimately ceased to operate as an independent brand after its acquisition by JAB Broadband in 2015. JAB Broadband folded the business into Rise Broadband, ending Internet America’s separate corporate and market identity. The company’s history therefore spans three distinct phases: its formation and rapid acquisition activity in the 1990s, post-dot-com contraction and restructuring, and eventual consolidation into a larger rural broadband provider.

Internet America was founded in 1995 by Robert Maynard Jr. as an Internet service provider serving customers in Texas. Its formation coincided with the rapid commercialization of Internet access, when providers competed to connect households and businesses to the emerging online economy. The company pursued growth through a combination of service operations and acquisitions. On December 11, 1998, Internet America completed an initial public offering. The offering placed the company within the highly speculative public market for Internet businesses, and its stock rose 14.4 percent on the first day of trading. During 1999, the company accelerated its expansion. It acquired Compunet for approximately $2 million in February, acquired CyberRamp, purchased NeoSoft for $7.3 million in cash in July, acquired INTX.Networking LLC in August, and bought PDQ.net in September in a stock transaction valued at approximately $32 million. The acquisitions increased the scale of the combined operation, which was reported to have 145,000 subscribers. Internet America's public-market experience also illustrated the instability of the dot-com period. In December 1999, the company's stock doubled in value in one day even though no specific news was identified as the cause. As investor sentiment toward Internet companies deteriorated, the company lost its NASDAQ listing on August 14, 2001. The post-bubble period brought cost reductions and a narrower operating posture. In 2003, Internet America reduced its workforce from 109 to 70 employees and reduced its occupied office space. It nevertheless continued selective expansion, acquiring My Linux ISP in November 2004 and 2Fast Communications in January 2006. Glen Blackmon was appointed president and chief operating officer in October 2005. In 2006, the company moved its headquarters from Dallas to Houston; Blackmon resigned on December 26 of that year. In November 2008, Internet America announced a merger with KeyOn Communications Holdings. The transaction did not proceed and was terminated in February 2009. Later in 2009, Internet America appointed former Texas governor Mark White as special counsel for the development of broadband networks in rural areas. This appointment reflected an effort to support broadband expansion in less densely served areas and to develop the company's position in rural connectivity. The company remained independent until 2015, when it was acquired by JAB Broadband. JAB Broadband folded Internet America into Rise Broadband, ending the company's separate corporate existence and brand presence. Internet America's historical trajectory therefore moved from 1990s Internet-service expansion and acquisition activity, through public-market contraction and operational retrenchment, to consolidation within a larger broadband platform.

• 2015

  Integration into Rise Broadband

  [1]Internet Americaen.wikipedia.org

  JAB Broadband acquired Internet America and folded it into Rise Broadband.

• 2009

  Rural broadband development appointment

  [1]Internet Americaen.wikipedia.org

  Former Texas governor Mark White became special counsel for rural broadband network development.

• 2006

  Headquarters relocation and further acquisition

  [1]Internet Americaen.wikipedia.org

  Internet America acquired 2Fast Communications and moved its headquarters from Dallas to Houston.

• 2004

  My Linux ISP acquisition

  [1]Internet Americaen.wikipedia.org

  Internet America acquired My Linux ISP in November.

• 2003

  Post-dot-com restructuring

  [1]Internet Americaen.wikipedia.org

  The company reduced its headcount and office footprint.

• 2001

  NASDAQ listing removed

  [1]Internet Americaen.wikipedia.org

  Internet America's shares were removed from NASDAQ on August 14, 2001.

• 1999

  Acquisition-led expansion

  [1]Internet Americaen.wikipedia.org

  The company acquired several Internet businesses, including Compunet, CyberRamp, NeoSoft, INTX.Networking LLC, and PDQ.net.

• 1998

  Initial public offering

  [1]Internet Americaen.wikipedia.org

  Internet America became publicly traded on December 11, 1998.

• 1995

  Company founded

  [1]Internet Americaen.wikipedia.org

  Robert Maynard Jr. founded Internet America as a Texas-based Internet service provider.

A Texas-based Internet service provider that grew through subscriber acquisitions and later focused on operating efficiency and broadband network development, including rural connectivity initiatives.

• Internet service provider · 1995

  Internet access services

  Internet America operated as an Internet service provider, offering connectivity services to customers in Texas. The available historical record identifies the company primarily through its ISP operations and subscriber base rather than through individually named consumer product families.

• Broadband Internet

  Broadband connectivity

  Broadband connectivity formed part of Internet America's later strategic orientation, particularly its efforts to support network development in rural areas. In 2009, the company appointed Mark White as special counsel for rural broadband network development.

• 2015

  Acquisition by JAB BroadbandM&A

  Background

  Internet America was consolidated into a larger broadband platform.

  Action taken

  JAB Broadband acquired the company and folded it into Rise Broadband.

  Aftermath

  Internet America ceased operating as an independent brand.

  Source

• 2008

  Proposed KeyOn Communications mergerM&A

  Background

  Internet America announced a proposed combination with KeyOn Communications Holdings.

  Action taken

  The companies announced the merger in November 2008.

  Aftermath

  The transaction was terminated in February 2009.

  Source

• 2003

  Post-bubble cost restructuringStrategy

  Background

  Following the collapse of the dot-com market and the loss of its NASDAQ listing, Internet America reduced its operating footprint.

  Action taken

  The company reduced headcount from 109 to 70 and cut occupied office space.

  Aftermath

  The business entered a more restrained phase while continuing selective acquisitions in later years.

  Source

• 1999

  Acquisition program during the dot-com expansionM&A

  Background

  Internet America sought rapid scale during the late-1990s Internet boom.

  Action taken

  It acquired Compunet, CyberRamp, NeoSoft, INTX.Networking LLC, and PDQ.net during 1999.

  Aftermath

  The combined company was reported to have approximately 145,000 subscribers, although the broader expansion occurred during a highly volatile market period.

  Selected acquisition consideration. Compunet acquired for approximately $2 million; NeoSoft acquired for $7.3 million in cash; PDQ.net acquired for stock valued at approximately $32 million (1999)

  Source

1. 1Internet Americaen.wikipedia.org