[139599] in North American Network Operators' Group
Re: Level 3 Agrees to Purchase Global Crossing
daemon@ATHENA.MIT.EDU (ML)
Tue Apr 12 20:39:51 2011
Date: Tue, 12 Apr 2011 20:38:40 -0400
From: ML <ml@kenweb.org>
To: nanog@nanog.org
In-Reply-To: <4DA30C9D.107@gmail.com>
Reply-To: ml@kenweb.org
Errors-To: nanog-bounces+nanog.discuss=bloom-picayune.mit.edu@nanog.org
On 4/11/2011 10:13 AM, William Allen Simpson wrote:
> 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.”
>
>
If L3 merges GBLX in as well as they did Broadwing...the little guy
stands to do pretty well.
