Centurylink acquires Level3

Centurylink acquires Level3

Centurylink announced that it has come to an agreement to acquire Level3. The deal consists of a cash and stock deal and is worth around $25 billion.

The stock price of Centurylink dropped by more than 12.5% following the announcement while Level 3 stock went up more than 4%. The deal is expected to close by the 3rd querter of 2017.

The current CEO of Centurylink will be in charge of the combined company while Level3’s CFO will serve as its CFO. Centurylink has acquires multiple companies over the last years in a bid to withstand growing competition in the landline industry. Examples are Sprint and Qwest.

The impact on the CDN business of Level3 is unclear at this point.

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