The investment relations people at Global Crossing (www.globalcrossing.com) have to be crazy-busy this week. Just before announcing its third quarter 2010 results, the company announced it was acquiring global video services provider Genesis Networks.
Global Crossing is picking up Genesis for about $27 million, including covering $15 million in debt. Genesis is described as an “innovator in high-performance, rich-media and video-based solutions serving the world’s major broadcasters, producers, and aggregators of specialized programming.”
CEO John Legere said buying Genesis was a strategic acquisition for the company, getting it into the ability to add new and different value-added solutions for video requirements. Genesis assets includes a network stretching across 70 cities on five continents and linking international media centers through 225 on-net locations.
Customer of Genesis comprise “some of the most recognizable broadcast and program distributors in the world, including leading sports networks, news broadcasters, sports rights holders, news agencies and international broadcasters.” Secret sauce of the company includes its proprietary IRIS customer interface to give customers direct access and control over their global media distribution network; ther’s also a super-duper NOC in Manhattan to manage and monitor the global video network.
As for the third quarter 2010 results, Global Crossing announced consolidated revenue of $648 million, a sequential increase of 3 percent as reported, “invest and grow” revenue of $568 million, OIBDA of $109 million – a sequential increase of 17 percent as reported, and free cash flow use of $1 million, an improvement of $12 million sequentially. Accountants will note that OIDBA and free cash flow are not GAAP (Generally Accepted Accounting Principle) measurements.