{"id":7095,"date":"2014-06-20T17:53:41","date_gmt":"2014-06-20T17:53:41","guid":{"rendered":"http:\/\/aerocominc.com\/?p=7095"},"modified":"2015-05-07T15:57:26","modified_gmt":"2015-05-07T22:57:26","slug":"level-3-says-will-you-marry-me-to-tw-telecom-for-a-5-7-billion-merger-deal","status":"publish","type":"post","link":"https:\/\/www.aerocominc.com\/info\/level-3-says-will-you-marry-me-to-tw-telecom-for-a-5-7-billion-merger-deal\/","title":{"rendered":"Level 3 Says \u201cWill You Marry Me?\u201d to TW Telecom for a $5.7 Billion Merger Deal"},"content":{"rendered":"

The Post Marriage \u201cDeets\u201d <\/strong><\/p>\n

On Monday, June 16, Level 3 Communications agreed to buy TW Telecom, a business Internet connections<\/span><\/strong><\/a> provider, for approximately $5.6 billion. It\u2019s no secret that they are not the first telecommunications company in the industry to “pop the question”! In 2014, it appears that\u00a0several companies\u00a0will be joining in marital bliss as they attempt to widen\u00a0their product offerings. Comcast is buying out Time Warner Cable, AT&T is trying to take over DirectTV, and Sprint and T-Mobile USA are also seeking to merge.<\/p>\n

Under this new merger, Level 3 has agreed to pay \u201c$10 a share in cash and 0.7 of one of its shares for each TW Telecom Share.\u201d This offer was about $40.86 a share, 12 percent above TW Telecom\u2019s closing price on Friday. Level 3 will be scoring big by partnering with TW. TW is one of the largest providers of Internet access and online-based voice calling to businesses. Their fiber optic cables are used by well known companies, Google and Netflix. TW Telecom is based in Lone Tree, Colorado; and “reported $36.5 million in profits last year on $1.6 billion in revenue. Level 3 hopes to generate $240 million in cost savings, much of which will come from shaving network and operating expenses.\u201d<\/p>\n

As with any marriage, both companies have to combine the good and the bad\u2014in this case the bad is a lovely $1.6 billion in debt! Don\u2019t you just love starting out a marriage in debt?! We didn\u2019t think so. Level 3 is likely not going to be toasting to that!<\/p>\n

When Will They Officially Say \u201cI do\u201d?<\/strong><\/p>\n

Rumor has it that the deal will be closed by year end. Jeff Storey, Chief Executive at Level 3, said in a recent statement, \u201cWe believe this is a financially compelling and very strategic acquisition for Level 3 that will enhance our ability to continue to gain market share.\u201d This marriage between Level 3 and TW Telecom will further solidify Level 3\u2019s position in the telecommunication industry, as a premier global communications provider to the enterprise, government, and carrier market. TW and Level 3 together create a true \u201cpower couple\u201d as they look forward to the future and seek to combine \u201cLevel 3\u2019s global assets and capabilities with TW\u2019s extensive local operations and assets in North America.\u201d<\/p>\n

\"I-DO-Marriage-Series\"<\/a><\/p>\n

(Photo Source)<\/a><\/p>\n

(Article Source)<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Post Marriage \u201cDeets\u201d On Monday, June 16, Level 3 Communications agreed to buy TW Telecom, a business Internet connections provider, for approximately $5.6 billion. It\u2019s no secret that they are not the first telecommunications company in the industry to…<\/span> <\/p>\n

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