WinStar Communications is in some ways Silicon Alley's stealth company. That may seem like a silly thing to say about a company with a market cap of over $1 billion that just secured a commitment from Lucent for up to $ 2 billion in financing to build out its national, wireless telecom network.
But despite its size and ambition, WinStar (http://www.winstar.com) -- one of New York City's leading high tech, information industry companies -- has left only a slight footprint on Silicon Alley, until now. This week, the company revealed that it had acquired Media Connection of New York late in August. Media Connection will now be known as WinStar Media Connection (http://www.mcny.com).
For Media Connection the move is the end of a long road. Founded as a media agency in 1994, the firm early on began focusing on the Net, and lately has been better known for its system integration, database development and the development of software products like its Web-based Clocksheets system for tracking employees working on multiple projects. The company still does media buying, Web banner creation, and online marketing. But as part of WinStar's Broadband Services business unit, Media Connection will focus on adding Internet access, Web hosting, Web development, and integration service to WinStar's core offerings.
WinStar provides wireless telephone and broadband data connectivity using a line-of-sight system of transmitters and receivers that operate over the 28 and 38 gigahertz radio frequencies. The company is in a similar business to another local start-up, the troubled CellularVision USA, which last July had to sell some of its licensed access to those radio frequencies to WinStar $32.5 million in cash.
Former MCNY Chairman Greg Devers is now senior vice president and chief operating officer of WinStar Broadband Services. David Jonas, former president of MCNY, is now vice-president and general manager of WinStar Media Connection. Lou Person, vice president of technology; Scott Hoffman, vice president of marketing; and David Goldin, vice president of sales will retained their positions at what is now WinStar Media Connection. Financial terms of the acquisition were not announced.
The acquisition of one of the oldest interactive services firms, not just in New York but in the entire industry, marks a move by WinStar to bundle Web design and implementation, database development, and systems integration with its wireless networking service offerings for corporate clients, and adds a higher profile face for WinStar's Internet content, media, and integration efforts in New York.