Inc. The WorldCom Inc was a telecommunication corporation. Bernard Ebbers was the former Chief Executive of the corporation. He was ultimately found guilty of accounting crimes which lead to a huge scandal. He constructed the unification with MCI‚ which at the time was the largest technology company in the US. This merger allowed a breakthrough into the monopoly AT&T had on the telecommunication industry at the time. The Scandal cause by Ebbers ultimately produced the ultimate demise
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acquired Advantage Companies‚ Inc. LDDS name was changed to LDDS WorldCom in 1995‚ which later became known as just WorldCom. During the 1990s‚ LDDS growth under WorldCom was fueled mainly through acquisitions and reached its peak with the acquisition of MCI in 1998. Among the companies acquired or merged with WorldCom‚ LDDS merged in an all-stock deal with discount long-distance service provider Advanced Telecommunications in 1992. In 1993‚ LDDS acquired long-distance providers Resurgens Communications
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Massachusetts-Boston Read the original case. In December 2005‚ two years after this case was written‚ the telecommunications industry consolidated further. Verizon Communications acquired MCI/WorldCom and SBC Communications acquired AT&T Corporation‚ which had been in business since the 19th Century. The acquisition of MCI/WorldCom was the direct result of the behavior of WorldCom’s senior managers as documented above. While it can be argued that the demise of AT&T Corp. was not wholly attributable
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CHAPTER 1 INTERCORPORATE ACQUISITIONS AND INVESTMENTS IN OTHER ENTITIES ANSWERS TO QUESTIONS Q1-1 Complex organizational structures often result when companies do business in a complex business environment. New subsidiaries or other entities may be formed for purposes such as extending operations into foreign countries‚ seeking to protect existing assets from risks associated with entry into new product lines‚ separating activities that fall under regulatory controls‚ and reducing taxes
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November 10‚ 1997 WorldCom merged with MCI Communications. In 1999 MCI WorldCom announced a planned merger with Sprint for $129 billion. The US Department of Justice and the EU put pressure on the companies to forego the merger due to concerns about monopoly. The merger was terminated on July 13‚ 2000 and the company was renamed‚ once again‚ WorldCom (MCI Inc.). The telecommunications industry entered a downturn in 1998‚ shortly after WorldCom acquired MCI. The basic problem faced by WorldCom
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the company to grow but the aggressive acquisitions that made the company grow. In its day‚ CEO Bernard Ebbers led the company through seventeen mergers and acquisitions‚ including the (at the time) largest ever with MCI in 1998 valued at $37 billion. Some credit the acquisition of MCI with the eventual downfall of the company since it was the decline in long distance services that caused the stock price to begin its decline. That is in fact what helped lead to the impending fraud that would almost
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uncertainties simultaneously increase for MCI Communications. MCI could certainly gain by having equal quality of access to all local telephone companies‚ but to what extent is difficult to assess. By FY1990‚ MCI market share is forecasted to hit 20%‚ however‚ this number is contingent upon other competitors in the market and the market itself as it adapts to the shock of competition. If market share increases more dramatically or more rapidly than predicted‚ MCI could have increased external financing
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majority of the video is an interview with Walt Pavlo of MCI Worldcom. He explains his case and the steps that lead him to take the actions that landed him in prison. While he is telling his story two gentalmen describe how Walt’s story relates to the world of auditing as a whole and what steps a company and auditors need to take to avoid cases of fraud. 1. What were the three major fraud factors that led Walt Pavlo to commit fraud at MCI Worldcom? * Meeting Analysts’ Expectations *
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Behind Closed Doors at WorldCom: 2001 Zekany‚ Kay E;Braun‚ Lucas W;Warder‚ Zachary T Issues in Accounting Education; Feb 2004; 19‚ 1; ProQuest Central pg. 101 Behind Closed Doors at WorldCom: 2001 Kay E. Zekany‚ Lucas W. Braun‚ and Zachary T. Warder ABSTRACT: WorldCom was a large telecom company that enjoyed an almost meteoric rise during the 1990s but ran into trouble in the early 2000s. 2001 was particularly difficult. This case gives future generations of accountants the opportunity
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WorldCom’s business success by promoting business practices that provide greater opportunity for a diverse supplier base." Throughout WorldCom’s lively years‚ it had great growth through the buying out of other telecommunication companies‚ such as MCI Communications‚ Tier 1 ISP UUNET‚ and had a major part of the internet backbone. On November 10‚ 1997‚ this powerful company announced their 37 billion dollar merger‚ making it the largest in US history. WorldCom had almost become the nation’s top
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