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Worldcom dials new focus
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November 2, 2000: 3:32 p.m. ET
No. 2 U.S. long-distance provider adopts popular Cisco growth strategy
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NEW YORK (CNNfn) - Don't expect Worldcom Inc. to dial up another major acquisition anytime soon.
Bernard Ebbers, chief executive officer of the No. 2 U.S. long-distance company, told CNNfn Thursday that his company was shifting its growth model away from trying to land a big-name acquisition to focusing on internal growth and adding smaller acquisitions to supplement its operations.
Ebbers, speaking after delivering a keynote address at the Bear Stearns Global Communications conference, compared the strategy to that of Cisco Systems (CSCO: Research, Estimates), the highflying computer networking company that has a well-documented history of concentrating primarily on its internal operations and acquiring small companies with enormous growth potential.
 "We realize that the regulatory realities would make any large acquisition that smelled of the Internet almost impossible," he said.
Ebbers' comments came just one day after the Clinton, Miss.-based Worldcom issued a fourth-quarter earnings warning and unveiled a massive restructuring plan designed to help stem slower-than-expected growth in its long-distance business.
Worldcom plans to split its operations into two companies and send the former MCI long-distance operations back into the marketplace.
Click here to read about AT&T's restructuring plan, unveiled last week
It also comes less than four months after Worldcom's $129 billion bid to acquire competitor Sprint Corp. failed in the face of stiff regulatory opposition. The U.S. Department of Justice actually sued to block the proposed union saying it would severely stymie competition in the U.S. long-distance market.
Since that time, investors have hammered Worldcom's stock price, causing some analysts to question the company's future. When asked directly Thursday if Worldcom was for sale, Ebbers replied that the company "has always been for sale at the right price" if it can find a way around the regulatory challenges.
Worldcom (WCOM: Research, Estimates) shares traded off $1.00 to $17.94 in midafternoon trading Thursday. 
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