EarthLink invests $50 million in Covad | CNET News.com:


EarthLink said Thursday that it has made a $50 million equity investment in Covad Communications Group to fund the expansion of the companies' co-developed voice services to eight new markets.

As part of the deal, EarthLink will receive $10 million in Covad common shares and $40 million in convertible debt, due in 2011.

Covad, a broadband access wholesaler, will use the money to fund infrastructure construction so that EarthLink can offer its line-powered voice service using the Covad network in Atlanta, Chicago, Los Angeles, Miami, New York, Philadelphia, San Diego and Washington, D.C.