Earthlink Needs To Be More Aggressive

Earthlink is adding eight more cities where it will now sell line-powered voice and 8 megabits per second DSL connections. Good news for Covad, as well. EarthLink has agreed to provide Covad with $50 million in debt and equity financing to fund additional network build-outs. Big question…. why not just by Covad? At $467 million in market cap, an all stock deal is still going to be cheaper… in the long run. They did about $440 million in sales last year, and lost about $15 million. And while they are at it, why not just scoop up some of the smaller DSL players. Like Speakeasy. Time to be aggressive Earthlink? –