North American Network Operators Group

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Re: Buy tier 1 peering for only $15 million

  • From: Sean Donelan
  • Date: Thu Apr 20 20:53:23 2000

I violently agree you should conduct due diligence when purchasing
any company to make you get what you thought you were getting.  Much
like when Anheuser-Busch bought SeaWorld and forgot to check the
contract to see if it included Shamu.  Or BBN actually counting the
routers in BARRNET to see if they matched the ones on the books.

I've been told the ISPs' auditors are doing due diligence of the
peering agreements in this case.

On the other hand, of all the peering battles I've heard about, I've
never heard of a peering agreement being terminated as a result of a
change of ownership of the ISP.  Even in Verio's case, when Verio was
both a customer and a peer of different providers as it bought various
providers (most companies have strict policies against peering with
customers), from my outside (without NDA information) place, I didn't
notice peering sessions suddenly going away.


On Thu, 20 April 2000, Randy Bush wrote:
> >>   ...such relationships are not always 'transferrable,'
> >>   and one should evaluate any existing contractual
> >>   agreements regarding said relationships before making
> >>   such assumptions.
> > 
> > So even though Jeff's statement is technically true, I don't think
> > it is very practical.
> 
> it is extremely practical.  and when purchasing an asset, review
> of contracts is exceedingly prudent.  and the confidentiality of
> those contracts is not an issue as the contract review is under
> nda.