Global Crossing went from a single undersea cable plan to a $5 billion stock market value in about 18 months. Gary Winnick, a Los Angeles investor, founded it in 1997 to lay fiber across the Atlantic and sell the capacity to carriers. The internet was growing, and traffic between continents seemed sure to explode. When the Bermuda company filed to go public in 1998, its first cable, Atlantic Crossing, was still being finished.

Fiber on the Ocean Floor

Undersea cables had long been built by groups of phone companies working together. Winnick's idea was to build them privately and sell capacity to anyone who wanted it. Atlantic Crossing linked the United States and Europe. Plans followed for cables to Asia and Latin America, adding up to a global network. The bet needed huge amounts of debt and steady demand. Global Crossing borrowed heavily to build both.

Boom, Then the Biggest Bust

Global Crossing priced its IPO at $19 a share in August 1998, selling 21 million shares and raising $399 million. It closed its first day at $25.50, worth about $5.15 billion. Through 1999 it bought Frontier Communications and expanded fast. Too many companies laid too much fiber, and prices for capacity collapsed. Global Crossing filed for bankruptcy in January 2002, one of the largest in U.S. history. It emerged in 2003 and was acquired by Level 3 Communications in 2011.

Cover: On the Atlantic, Anders Zorn. Art Institute of Chicago, public domain. Chosen for a crossing of the Atlantic.