Level 3 Agrees to Purchase Global Crossing

Mon Apr 11 14:48:47 UTC 2011

combining the companies will allow them to maximize efficeinecies by the
elimination
of overlapping functions, hopefully paving the way to profitability.

Job cuts here we come ........

Mike

On Mon, Apr 11, 2011 at 10:41 AM, Mike Walter <mwalter at 3z.net> wrote:

> 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 :)
>
>