Level 3 To Acquire Global Crossing In $1.9B Deal |
| Wall Street Journal - Apr 11, 2011 |
Level 3 Communications Inc. (LVLT) agreed to acquire Global Crossing Ltd. (GLBC) for roughly $1.9 billion in a merger of two once high-flying stocks that are now combining to strengthen their ability to charge more for delivering Internet services over long distances.
The two companies saw tremendous growth during the Internet bubble, racing to build out networks of speedy fiber-optic lines around the country and throughout the world. But when the tech bubble burst, so did the need for all of their excess capacity. Global Crossing filed for bankruptcy in 2002, one of the most high-profile bankruptcies in U.S. history. Level 3 has flirted with bankruptcy, having struggled with profitability.
The two weakened companies should see some immediate benefits once the deal closes. The transaction allows the combined company to nearly double its revenue while lowering both its debt level and operating expenses. Internet traffic can flow through more of its own network, reducing the amount of transport fees paid to other carriers.
"Our combined company will go more places with our own facility than any other company in the world," Level 3 Chief Executive Jim Crowe said in an interview.
Read Full Article from Wall Street Journal
- Posted: 2011-04-11 11:56:16
| More Stock Investor Place Company News |
 |
|
|
|
| Stock Investor Place Company News Archive |
|
|
|
