Under the deal, each MindSpring share will be converted into one share of the combined company while each EarthLink share will be exchanged for 1.615 new shares. The new EarthLink will set up shop in MindSpring's current digs in Atlanta. One way to create value and score points in the Internet access area is to rip pages out of the AOL playbook and do an end-run around the online giant's weaknesses. The companies seem to have the connectivity part of the Internet down cold.
Content is currently a gaping hole at the two companies' fledging portals.
Outside of EarthLink's bLink online magazine, MindSpring's personalized Web domain hosting services, and a smattering of lame contests and surveys, unique content offerings are pretty weak. These areas will need to receive more attention post-merger. By combining their decent-sized user bases into one jumbo user base, the two companies will carry more clout with advertisers and will attract new business. The larger scale also produces an opportunity for more co-marketing arrangements with retailers to sell products to a large group of potential buyers. The two firms were ranked numbers one and two in overall national ISP customer service in a recent JD Power and Associates study.