Tuesday, November 01, 2016

Level3 and CenturyLink merger to create a strong competitor to better compete with rivals AT&T and Verizon

CenturyLink will keep 51% of Level 3 for US$ 34 billion. The Louisiana-based company offers Internet to telephony to residential users in the United States, but also has 58 data centers worldwide. With this merger, will strengthen its corporate business, which constitutes 64% of its revenues in the first nine months of the year, and Level 3 may focus on smaller customers and save costs.

The agreement announced yesterday states that Level 3's shareholders will receive US$ 69.92 for each of their titles in cash and stock that increases the total transaction to US$ 34 billion including debt. The transaction has already been approved by the boards of directors of both companies but expect to close it in the third quarter of 2017.

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