Level 3 Agrees to Purchase Global Crossing

Mon Apr 11 14:41:18 UTC 2011

I find it amusing that the article says - "The deal will combine two unprofitable companies...".  

So I guess the thinking is that two negatives make a positive?  

-Mike

-----Original Message-----
From: Dorn Hetzel [mailto:dorn at hetzel.org] 
Sent: Monday, April 11, 2011 10:26 AM
To: Jay Ashworth
Cc: NANOG
Subject: Re: Level 3 Agrees to Purchase Global Crossing

On Mon, Apr 11, 2011 at 10:22 AM, Jay Ashworth <jra at baylink.com> wrote:

> ----- Original Message -----
> > From: "William Allen Simpson" <william.allen.simpson at gmail.com>
>
> >
> http://www.bloomberg.com/news/print/2011-04-11/level-3-agrees-to-acquire-global-crossing-in-deal-valued-at-1-9-billion.html
> >
> > The deal will combine two unprofitable companies with total revenue of
> > $6.26 billion as of last year, and cut annualized capital spending by
> > about $40 million, according to the statement. It will also help
> > reduce
> > the pressure on prices, which have declined by as much as 30 percent a
> > year in the industry, said Donna Jaegers, an analyst at DA Davidson &
> > Co.
>
> Let me see if I have that straight.
>
> We're *admitting* in public that the result will be to make prices go up
> for
> customers?  Wow... Justice is going to have a field day with that.
>
> Cheers,
> -- jra
>
> Well, maybe they're just admitting it will slow the rate at which prices go
down :)