The Rise and Fall of MCI WorldCom
A Telecommunications Giant's Demise
On November 4, 1997, WorldCom and MCI Communications announced a $37 billion merger, creating one of the world's largest telecommunications companies. At its peak, WorldCom was the second-largest long-distance telephone provider in the United States, with operations in over 60 countries.
However, the company's rapid growth was built on a foundation of accounting fraud. In 2002, WorldCom revealed that it had overstated its assets by $11 billion, the largest accounting scandal in history at the time.
The scandal led to the company's bankruptcy and the indictment of several top executives, including former CEO Bernard Ebbers. Ebbers was sentenced to 25 years in prison for his role in the fraud.
The collapse of WorldCom sent shockwaves through the telecommunications industry and led to increased scrutiny of corporate accounting practices. It also marked the end of an era, as the company that had once been a symbol of the booming tech economy became a cautionary tale about the dangers of unchecked greed.
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