U.S. telecom operator CenturyLink to $34 billion acquisition of Level 3 communication technology – Sohu [Technews] U.S. telecom operator CenturyLink science news in 31 announced, will plus stock for $19 billion 430 million in cash, the acquisition of another American telecom operators Level 3 to strengthen communication, optical networks and high-speed data services. According to the terms of the acquisition agreement pointed out, CenturyLink will be $26.5 per share in cash, plus the purchase of CenturyLink shares of the stock of Level 3 communications. In other words, that is, holders of Level 3 communications shares of shareholders, convertible cash of $26.5 per share, plus the stock of CenturyLink shares of 1.4286. In total, including debt, the deal is about $34 billion. Level 3 communications is the world’s leading backbone network system providers. However, due to the slowdown in the growth of related businesses in recent years, has gradually shifted the focus of business customers in small and medium enterprises, hoping to reduce the impact of the slowdown in core business growth. The past is a fixed line service provider CenturyLink, the main business in the past is to provide rural local telephone service based, 2/3 of revenue from corporate customers. Efforts are now being made to upgrade to the fiber optic network to compete with AT&, T, Verizon, and cable TV rivals. It is understood, because the two companies have corporate customers seeking higher bandwidth, faster data transmission ability to the occasion, the two companies have greater cooperation in space. The deal is expected to be completed by the end of the third quarter of 2017. When Level 3 communications enterprise services will be integrated with the CenturyLink network, CenturyLink optical fiber network will reach 200 thousand miles. In the future, CenturyLink will also have a 51% stake in the new company after the merger, the remaining approximately $49% will be held by the Level communications shareholders of the 3. Due to the transaction price of about $66.5 per share, compared to the previous day’s closing price of Level communications, compared to a premium of up to 42%. So, by the news of the incentive, Level 3 communications in the stock price of intraday trading in 31 was up by $57.81, the price of $7% per share. CenturyLink shares fell 8% to $27.95 a share. Since 2016, CenturyLink shares have fallen about 21%. (source: Flickr Kevin DooleyCC BY the first figure 2) for more information, please pay attention to the WeChat public account: Technews Science News相关的主题文章: