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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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0001032210-00-000056.txt : 20000202
0001032210-00-000056.hdr.sgml : 20000202
ACCESSION NUMBER: 0001032210-00-000056
CONFORMED SUBMISSION TYPE: SC 13G
PUBLIC DOCUMENT COUNT: 1
FILED AS OF DATE: 20000121

SUBJECT COMPANY:

COMPANY DATA:
COMPANY CONFORMED NAME: DIGEX INC/DE
CENTRAL INDEX KEY: 0001085098
STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE
COMMUNICATIONS (NO RADIO TELEPHONE) [4813]
IRS NUMBER: 593582217
STATE OF INCORPORATION: DE
FISCAL YEAR END: 1231

FILING VALUES:
FORM TYPE: SC 13G
SEC ACT:
SEC FILE NUMBER: 005-57127
FILM NUMBER: 511140

BUSINESS ADDRESS:
STREET 1: ONE DIGEX PLAZA
CITY: BELTSVILLE
STATE: MD
ZIP: 20705
BUSINESS PHONE: 3018475000

MAIL ADDRESS:
STREET 1: ONE DIGEX PLAZA
CITY: BELTSVILLE
STATE: MD
ZIP: 20705

FILED BY:

COMPANY DATA:
COMPANY CONFORMED NAME: MICROSOFT CORP
CENTRAL INDEX KEY: 0000789019
STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED
SOFTWARE [7372]
IRS NUMBER: 911144442
STATE OF INCORPORATION: WA
FISCAL YEAR END: 0630

FILING VALUES:
FORM TYPE: SC 13G

BUSINESS ADDRESS:
STREET 1: ONE MICROSOFT WAY #BLDG 8
STREET 2: NORTH OFFICE 2211
CITY: REDMOND
STATE: WA
ZIP: 98052
BUSINESS PHONE: 4258828080

MAIL ADDRESS:
STREET 1: ONE MICROSOFT WAY - BLDG 8
STREET 2: NORTH OFFICE 2211
CITY: REDMOND
STATE: WA
ZIP: 98052-6399

SC 13G
1
SCHEDULE 13G

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13G

Under the Securities Exchange Act of 1934

DIGEX, INCORPORATED
(Name of Issuer)

Class A Common Stock, Par Value, $0.01 Per

Share(Title of Class of Securities)

253756 10 0
(CUSIP Number)
 January 11, 2000
(Date of Event Which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this schedule
is filed:

[_] Rule 13d-1(b)

[X] Rule 13d-1(c)
[_] Rule 13d-1(d)

Robert A. Eshelman
General Counsel, Finance and Operations
One Microsoft Way
Redmond, Washington 98052-6399
(425) 882-8080
(Name, Address and Telephone Number of Person Authorized to Receive Notices
and
Communications)

*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).

- --------------------------------------------------------------------------------
CUSIP No.: 253756 10 0
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
Microsoft Corporation
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
91-1144442
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION State of Washington
- --------------------------------------------------------------------------------
NUMBER OF SHARES 5 SOLE VOTING POWER
BENEFICIALLY OWNED BY EACH
REPORTING PERSON WITH: 50,000 shares of Series A Preferred Stock of
the
Company. Such shares are convertible, at
Microsoft's option, into 14.61988 shares of the
Company's Class A Common Stock, par value $.01
per share (the "Common Stock"). In addition, the
Company has issued to Microsoft 532,500 three-
year warrants to purchase Common Stock with an
exercise price of $57.00 per share.
- --------------------------------------------------------------------------------
6 SHARED VOTING POWER
-0-
- --------------------------------------------------------------------------------
7 SOLE DISPOSITIVE POWER
1,263,494 (on an as-converted basis)*
- --------------------------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
-0-
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH
REPORTING PERSON
1,263,494 (on an as-converted basis)
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
9.0%**
- --------------------------------------------------------------------------------

- --------------------
* By agreement with the Company, Microsoft's ability to transfer the Series A
Preferred Stock, the shares of Common Stock underlying such Series A Preferred
Stock, and the shares of Common Stock underlying the warrants is restricted for
one year from the date of issuance.

** The Company filed a registration statement with the Securities and Exchange
Commission on January 18, 2000 purporting, among other things, to offer
2,000,000 shares of its Common Stock. On the successful completion of such
offering, Microsoft's percentage ownership of the Common Stock would decrease to
approximately 5.3%.

- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON
CO
- --------------------------------------------------------------------------------
Item 1.
(a) Name of Issuer: Digex, Incorporated (the "Company")
--------------
(b) Address of principal executive offices of the Issuer: One Digex Plaza,
----------------------------------------------------
Beltsville, MD 20705, (240) 264-2000

Item 2.
(a) Name of Person Filing: Microsoft Corporation, a Washington
---------------------
corporation

(b) Address of Principal Business Office: One Microsoft Way, Redmond,

------------------------------------
Washington 98052 Attention: General Counsel, Finance and Operations

(c) Citizenship: State of Washington.

-----------

(d) Title of Class of Securities: Series A Preferred Stock (each share

----------------------------
convertible into 14.61988 shares of Common Stock); 532,500 warrants to
purchase Common Stock.

(e) CUSIP Number: 253756 10 0

------------ -----------

Item 3. Not Applicable.

Item 4. Ownership.
---------
(a) Amount beneficially owned: 50,000 shares of Series A Preferred Stock
-------------------------
of the Company. Such shares are convertible, at Microsoft's option, into
14.61988 shares of the Company's Class A Common Stock, par value $.01 per share
(the "Common Stock"). In addition, the Company has issued to Microsoft 532,500
three-year warrants to purchase Common Stock with an exercise price of $57.00
per share.

(b) Percent of class: 9.0%*

----------------

(c) Number of shares as to which the person has:

-------------------------------------------
(i) Sole power to vote or to direct the vote: 1,263,494 (as
converted)
(ii) Shared power to vote or to direct the vote: 0
(iii) Sole power to dispose or to direct the disposition of:
1,263,494 (as converted)
(iv) Shared power to dispose or to direct the disposition of: 0
Item 5. Ownership of Five Percent or Less of a Class: Not Applicable.
--------------------------------------------

Item 6. Ownership of More than Five Percent on Behalf of Another Person: Not
---------------------------------------------------------------
Applicable.

Item 7. Identification and Classification of the Subsidiary Which Acquired the

----------------------------------------------------------------------
Security Being Reported on By the Parent Holding Company: Not
--------------------------------------------------------
Applicable.

Item 8. Identification and Classification of Members of the Group: Not

----------------------------------------------------------
Applicable.

Item 9. Notice of Dissolution of a Group: Not Applicable.

--------------------------------

- --------------------
* The Company filed a registration statement with the Securities and Exchange
Commission on January 18, 2000 purporting, among other things, to offer
2,000,000 shares of its Common Stock. On the successful completion of such
offering, Microsoft's percentage ownership of the Common Stock would decrease to
approximately 5.3%.

Item 10. Certification: Not Applicable.

-------------

SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I

certify that the information set forth in this statement is true, complete and
correct.

January 21, 2000

MICROSOFT CORPORATION

By /s/ Robert A. Eshelman

----------------------
 Robert A. Eshelman, General Counsel,
Finance and Operations, Assistant
Secretary

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