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WorldCom to acquire Intermedia in $3B deal

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Clinton, Miss.--WorldCom Inc., the second-largest U.S. long-distance carrier, will buy Intermedia Communications Inc. in a $3 billion cash and stock deal. The acquisition makes WorldCom an instant player in the hot b-to-b Web hosting marketplace. Under the terms of the deal, WorldCom gets 55% ownership of Digex Inc., a corporate Web site hoster in which Intermedia owns a stake. The pact comes several months after WorldCom's plan to buy Sprint was blackballed by U.S. regulators.
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