[139501] in North American Network Operators' Group
Level 3 Agrees to Purchase Global Crossing
daemon@ATHENA.MIT.EDU (William Allen Simpson)
Mon Apr 11 10:13:59 2011
Date: Mon, 11 Apr 2011 10:13:49 -0400
From: William Allen Simpson <william.allen.simpson@gmail.com>
To: NANOG list <nanog@nanog.org>
Errors-To: nanog-bounces+nanog.discuss=bloom-picayune.mit.edu@nanog.org
http://www.bloomberg.com/news/print/2011-04-11/level-3-agrees-to-acquire-global-crossing-in-deal-valued-at-1-9-billion.html
The deal will combine two unprofitable companies with total revenue of
$6.26 billion as of last year, and cut annualized capital spending by
about $40 million, according to the statement. It will also help reduce
the pressure on prices, which have declined by as much as 30 percent a
year in the industry, said Donna Jaegers, an analyst at DA Davidson &
Co.
“This is what telecom has needed for a long time,” said Denver-based
Jaegers, who recommends buying both stocks. “You have way too many
players.”
