The Consolidation Continues…
Source: smithonvoip.com
Level 3, a leading international communications company, announced today that they have acquired Broadwing. Under the terms of the agreement, Level 3 will pay $8.18 of cash plus 1.3411 shares of Level 3 common stock for each share of Broadwing common stock outstanding at closing. In total, Level 3 currently expects to pay approximately $744 million of cash and issue approximately 122 million shares which would bring the total approximate purchase price to $1.4 Billion in Aggregate Cash and Stock.
The playing field just keeps getting smaller and smaller. In the near future I doubt there will be more then 2 or 3 telecom providers left. Some even think Google might buy Level 3. From now until then these large teleco seem ready to have their cake (wholesale supply) and eat it to (enterprise supply). I never quite understood how your supplier could also be your competitor, or why your supplier would want to be your competitor. I am curious as to what extent this continued consolidation will have on small-medium ISP’s and ITSP’s alike.
