June 13, 2002 -- A unit of Walt Disney has agreed to purchase a Los Angeles data center from the former Exodus Communications for about $8.6 million, according to bankruptcy court filings.
The 106,000 square foot data center at 1920 Maple Avenue, El Segundo was not among the 26 facilities sold to Cable & Wireless, which bought most of Exodus' assets through a bankruptcy proceeding earlier this year. The center includes 75,000 square feet of finished raised floor space.
According to the court documents, Disney Worldwide Services Inc.had signed a letter of intent to purchase the El Segundo facility at the time Exodus filed for Chapter 11 protection last September. Exodus sought higher offerings during its bankruptcy proceedings, but no other bids topped Disney's.
Under terms of the deal, EXDS Inc., the holding entity for assets not sold to C&W, will assign its lease and sell all equipment in the facility to Disney Worldwide for $8.64 million.
The sale, which must be approved by the bankruptcy court, was first reported by Bankrupt.com. Venture Asset Group is marketing the property, along with several other former Exodus sites. Phil Hughes, a spokesman for Venture Asset, said the firm is aware of the court filing but had no additional comment at this time.
Exodus was among the largest managed hosting providers when it sought protection, saying it had overexpanded as it pursued market share. On Feb. 5, Cable & Wireless acquired most of Exodus for approximately $850 million.
EXDS Inc. has been seeking buyers for the remaining Internet data centers in order to pay off creditors in the Chapter 11 case. Thus far it has completed deals to sell facilities to Freddie Mac (Herndon, Va.), Dell Computers (Austin, Texas), Q9 Networks (Toronto) and Deutsche Banc (Parsippany, N.J.).