Feeds

Level 3 pays $3bn for Global Crossing

Tier 1 rival was worth $39bn back in the day

Combat fraud and increase customer satisfaction

Level 3 is acquiring fellow tier 1 network provider Global Crossing, bringing together two of the most notorious fibre-networking firms from the heyday of the dotcom boom.

Level 3 will take over Global Crossing in an all-share deal, handing over 16 of its shares for every one of Global Crossing's. Working from Level 3's stock price on Friday, that values each share of Global Crossing at $23.04, taking into account $1.1bn of debt.

The firms say the deal will create a company with a "unique capability to meet local, national and global customer requirements in a wide range of markets". Naturally, the firms say they are complementary.

As a result of the deal, Singapore Technologies Telemedia, Global Crossing's biggest shareholder, will become a significant investor in Level 3. Level 3 said the deal will begin delivering free cash flow from 2013.

While both firms are barely on the radar to most net users these days, Global Crossing in particular was a fully paid up member of the dotcom boom, from the investors' point of view anyway, blowing through billions as it raced to build out its network around the turn of the century.

In its pomp, it was valued at as much as $39bn. But it collapsed into Chapter 11 in 2002, with government probes coming at it from all angles.

In April 2002, it wrote down $8bn in goodwill for just the fourth quarter of 2001, warning that billions more would probably be written off at some point.

It was eventually bought out by Hutchison and Singapore Telemedia, with the previous shareholders wiped out. By that point, it was valued at around $407m.

Not that Level 3 has had it all its own way over the years. Its shares were around the $140 mark in 2000. Its closing price on Friday was $14.80. ®

Combat fraud and increase customer satisfaction

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
AT&T dangles gigabit broadband plans over 100 US cities
So soon after a mulled Google Fiber expansion, fancy that
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
Google looks to LTE and Wi-Fi to help it lube YouTube tubes
Bandwidth hogger needs tube embiggenment if it's to succeed
Turnbull gave NBN Co NO RULES to plan blackspot upgrades
NBN Co faces huge future Telstra bills and reduces fibre footprint
NBN Co plans fibre-to-the-basement blitz to beat cherry-pickers
Heading off at the pass operation given same priority as blackspot fixing
NBN Co in 'broadband kit we tested worked' STUNNER
Announcement of VDSL trial is not proof of concept for fibre-to-the-node
prev story

Whitepapers

Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.