Digex, Inc. was one of the first

Internet service provider An Internet service provider (ISP) is an organization that provides a myriad of services related to accessing, using, managing, or participating in the Internet. ISPs can be organized in various forms, such as commercial, community-owned, no ...

s in the

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

. During the

dot-com bubble The dot-com bubble (or dot-com boom) was a stock market bubble that ballooned during the late-1990s and peaked on Friday, March 10, 2000. This period of market growth coincided with the widespread adoption of the World Wide Web and the Interne ...

, its stock price rose to $184 per share; the company was acquired for $1 per share a few years later.

History

Digital Express Group, predecessor to DIGEX, was founded by Doug Humphrey and Mike Doughney in the basement of Mr. Humphrey's townhouse in

Greenbelt, Maryland Greenbelt is a city in Prince George's County, Maryland, United States, and a suburb of Washington, D.C. At the 2020 United States census, 2020 census, the population was 24,921. Greenbelt is the first and the largest of the three experimental ...

in 1991, offering

web hosting service A web hosting service is a type of Internet hosting service that hosts websites for clients, i.e. it offers the facilities required for them to create and maintain a site and makes it accessible on the World Wide Web. Companies providing web h ...

s and Internet access. In 1995, the company raised $8 million from Grotech Capital and

Venrock Venrock (portmanteau of Venture and Rockefeller) is an American venture capital firm formed in 1969 to build upon the successful investing activities of the Rockefeller family that began in the late 1930s. It has offices in Palo Alto, California, ...

. In October 1996, the company became a

public company A public company is a company whose ownership is organized via shares of share capital, stock which are intended to be freely traded on a stock exchange or in over-the-counter (finance), over-the-counter markets. A public (publicly traded) co ...

via an

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investm ...

. The company employed 260 people by that year. In 1997, the company was acquired by Intermedia Communications, a

competitive local exchange carrier A competitive local exchange carrier (CLEC) is a North American telecommunications provider classification that emerged based on the competition model of the Telecommunications Act of 1996 in the United States. The act required the previously esta ...

based in

Tampa, Florida Tampa ( ) is a city on the Gulf Coast of the United States, Gulf Coast of the U.S. state of Florida. Tampa's borders include the north shore of Tampa Bay and the east shore of Old Tampa Bay. Tampa is the largest city in the Tampa Bay area and t ...

. In 1999, Intermedia completed the partial

corporate spin-off A corporate spin-off, also known as a spin-out, starburst or hive-off, is a type of corporate action where a company "splits off" a section as a separate business or creates a second incarnation, even if the first is still active. It is distinct ...

of Digex. In 2000,

Microsoft Microsoft Corporation is an American multinational corporation and technology company, technology conglomerate headquartered in Redmond, Washington. Founded in 1975, the company became influential in the History of personal computers#The ear ...

and

Compaq Compaq Computer Corporation was an American information technology, information technology company founded in 1982 that developed, sold, and supported computers and related products and services. Compaq produced some of the first IBM PC compati ...

invested $100 million in Digex. In September 2000,

WorldCom MCI, Inc. (formerly WorldCom and MCI WorldCom) was a telecommunications company. For a time, it was the second-largest long-distance telephone company in the United States, after AT&T. WorldCom grew largely by acquiring other telecommunicatio ...

acquired Intermedia Communications and gained a majority stake in Digex. In 2003, WorldCom acquired the remainder of the company. Verizon acquired Worldcom in 2006 and integrated the company into

Verizon Business Verizon Business (formerly known as Verizon Enterprise Solutions) is a division of Verizon Communications based in Basking Ridge, New Jersey, that provides services and products for Verizon's business and government clients. It was formed as Ve ...

Streaming media

In 1995, Digex launched ISP-TV, a network of linked

CU-SeeMe CU-SeeMe is an Internet videoconferencing client. CU-SeeMe can make point to point video calls without a server or make multi-point calls through server software first called a "reflector" and later called a "conference server" or Multipoint Co ...

videotelephony Videotelephony (also known as videoconferencing or video calling) is the use of audio signal, audio and video for simultaneous two-way communication. Today, videotelephony is widespread. There are many terms to refer to videotelephony. ''Vide ...

servers from multiple ISPs to provide for large-audience webcasts via

streaming media Streaming media refers to multimedia delivered through a Computer network, network for playback using a Media player (disambiguation), media player. Media is transferred in a ''stream'' of Network packet, packets from a Server (computing), ...

. In 1996, ISP-TV began producing original video content in one of the first "cyberstudios" in

Laurel, Maryland Laurel is a city in Maryland, United States, located midway between Washington, D.C., and Baltimore on the banks of the Patuxent River, in northern Prince George's County. Its population was 30,060 at the 2020 census. Founded as a mill town i ...

. Shows included "Angry Girl" a show hosted by Humphrey's wife, "Wired for Cinema" a film review show, "Head" (a beer show) and "Meeks Unfiltered" with

MSNBC MSNBC is an American cable news channel owned by the NBCUniversal News Group division of NBCUniversal, a subsidiary of Comcast. Launched on July 15, 1996, and headquartered at 30 Rockefeller Plaza in Manhattan, the channel primarily broadcasts r ...

correspondent

Brock Meeks Brock N. Meeks is an American investigative journalist. He founded the online publication ''CyberWire Dispatch'' in 1994 and helped pioneer the world of online journalism. At its peak, Meeks estimated that ''CyberWire Dispatch'' was distributed to ...

. Digex also streamed Bud Bowl during the

Super Bowl The Super Bowl is the annual History of the NFL championship, league championship game of the National Football League (NFL) of the United States. It has served as the final game of every NFL season since 1966 NFL season, 1966 (with the excep ...

for

Anheuser-Busch Anheuser-Busch Companies, LLC ( ) is an American brewing company headquartered in St. Louis, Missouri. Since 2008, it has been wholly owned by Anheuser-Busch InBev SA/NV (AB InBev), now the world's largest brewing company, which owns multiple ...

. In 1999 Apple hired Digex to stream the Star Wars trailer in QuickTime format. This industry first saturated the internet bandwidth at the time but proved that video streaming had a future.

References

{{Dot-com Bubble 1991 establishments in Maryland 1996 initial public offerings 2003 disestablishments in Maryland Telecommunications companies established in 1991 Technology companies disestablished in 2003 Defunct Internet service providers Defunct companies based in Maryland Dot-com bubble Greenbelt, Maryland Laurel, Maryland Defunct telecommunications companies of the United States Verizon acquisitions 2000 mergers and acquisitions