200: Tech Tales Found

Exodus Communications: The $32 Billion Giant That Vanished Overnight


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Exodus Communications was a pioneering force in the early internet, providing critical colocation and web hosting services that powered some of the era’s most iconic companies like Yahoo, eBay, Google, and Microsoft. Founded in 1994 by K.B. Chandrasekhar and B.V. Jagadeesh, the company quickly rose to prominence by building sprawling data centers across the globe, offering businesses secure, high-speed digital infrastructure. Under CEO Ellen Hancock, Exodus expanded aggressively through acquisitions and innovations such as early cloud storage with DataVault and the first global anycast DNS system. By 2000, its market value peaked at an astonishing $32 billion. However, its meteoric rise was fueled by unsustainable growth and excessive debt. When the dot-com bubble burst, Exodus found itself overextended, with empty server racks and unpaid bills piling up. The disastrous $6.5 billion acquisition of GlobalCenter in 2000 proved fatal as the stock plummeted from nearly $90 to just 17 cents within months. In September 2001, Exodus filed for Chapter 11 bankruptcy, listing over $5.9 billion in assets and $4.4 billion in liabilities. The once-dominant tech titan was eventually sold off in pieces to Cable & Wireless for $850 million, marking a tragic end to a company that had helped build the foundation of the modern internet. Though the Exodus name faded from public memory, its innovations lived on, shaping the digital world we now take for granted. The collapse serves as a cautionary tale about unchecked ambition, speculative markets, and the human cost behind corporate failure. Thousands of employees lost jobs, investors saw life savings vanish, and entire industries were shaken. Yet, despite its downfall, Exodus' legacy remains embedded in the infrastructure of today's internet—a silent testament to a visionary company that soared too high, too fast.

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200: Tech Tales FoundBy xczw