Best Buy grabs Speakeasy, Covad Smiles

8 thoughts on “Best Buy grabs Speakeasy, Covad Smiles”

  1. I think the BestBuy purchase will further erode what “geek cred” Speakeasy has left. Their service has diminished extensively over the last couple of years and their pricing premium does not merit the service levels offered. I was a customer in varying forms (SDSL, residential DSL, and biz DSL) since 1998 and have been shying away from recommending them for friends / colleagues.

    I know of at least two self labeled “geeks” that are planning on moving to another provider.

    Myself, I moved over to Sonic.net (here in the Bay Area) late last year.

  2. For many, SpeakEasy has lived up to its name for a ‘ask-no-questions’ approach to what people have been using their connection for. I’ll say no more other than to remind everyone that 50-80% of ISP traffic (ie cost) is p2p.

    However, I wonder whether Best Buy, in the face of improving profits and service reliability for it’s business customers, will er on the side of the ‘prohibition’ and turn the ISP into a dry shop.

    I think that will ultimately turn many of the ‘geeks’ away.

  3. I can’t really see how 3.6X return over 13 years is a “decent” exit for the VCs. Sure all $27M wasn’t put in on day one, which makes the time value of money on this deal probably look a little bit better, but I doubt any VC would brag about a 3.6X return over a more standard startup lifespan of 5 to 7 years. Any VC firm that returned 3.6X over 13 years on a fund would be out of business.

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