UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
Rhythms NetConnections, Inc.
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(Name of Issuer)
Common Shares
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(Title of Class of Securities)
762430205
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(CUSIP Number)
August 1, 2001
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(Date of Event which Requires Filing of this Statement)
John Seethoff
Deputy General Counsel, Finance and Operations
One Microsoft Way
Redmond, Washington 98052-6399
(425) 882-8080
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
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)
*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. 762430205
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NAMES OF REPORTING PERSON S.S., OR
1 I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Microsoft Corporation 91-1144442
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
2 (a) [_]
(b) [_]
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SEC USE ONLY
3
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CITIZENSHIP OR PLACE OF ORGANIZATION
4
State of Washington
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SOLE VOTING POWER
5
NUMBER OF
5,197,691*
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 6
OWNED BY -0-
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EACH SOLE DISPOSITIVE POWER
7
REPORTING
5,197,691*
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH: 8
-0-
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
5,197,691*
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CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
10
[_]
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
6.5%
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TYPE OF REPORTING PERSON
12
CO
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*Includes a warrant to purchase a total of 720,000 shares of Common Stock.
Item 1.
(a) Name of Issuer: Rhythms NetConnections, Inc.
(b) Address of principal executive offices of the Issuer:
9100 East Mineral Circle
Englewood, CO 80112
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: Deputy General Counsel, Finance and Operations
(c) Citizenship: State of Washington.
(d) Title of Class of Securities: Common Shares
(e) CUSIP Number: 762430205
Item 3. Not Applicable.
Item 4. Ownership
(a) Amount beneficially owned: 5,197,691 shares of Common Stock,
which includes a warrant to purchase a total of 720,000 shares of
Common Stock.
(b) Percent of class: 6.5%
(c) Number of shares as to which the person has:
(i) Sole power to vote or to direct the vote: 5,197,691
(ii) Shared power to vote or to direct the vote: 0
(iii) Sole power to dispose or to direct the disposition of:
5,197,691
(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.
Item 10. Certification: By signing below I certify that, to the best of my
knowledge and belief, the securities referred to above were not
acquired and are not held for the purpose of or with the effect of
changing or influencing the control of the issuer of the securities
and were not acquired and are not held in connection with or as a
participant in any transaction having that purpose or effect.
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.
August 2, 2001
MICROSOFT CORPORATION
By /s/ William H. Neukom
William H. Neukom
Executive Vice President and Secretary