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Is Level 3 Communications Up for Strategic M&A or Buyout?
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Leading U.S. fiber-optic network service provider, Level 3 Communications Inc. , is supposedly looking for strategic alternatives to maximize its shareholders’ value. Consequently, its share prices went up 3.55% to $56.30 on Jul 13. It is assumed that the company will either opt for a merger & acquisition (M&A) transaction or stock buyout considering its significant fund balance. However, nothing definite has been announced so far.
Strengths
Level 3 Communications has a strong presence in several fields of enterprise networking including data networks, content distribution, managed services, securities, voice cloud and cloud connection. The company stands to benefit from the ongoing trend of large enterprise customers shifting to IP and fiber-based network architecture. The company has also been rapidly increasing its fiber presence in the global Ethernet market of Latin America, Europe, Middle East and Asian (EMEA) countries. Thus, the company's fiber network holdings could make it an attractive acquisition target for companies who want to strengthen their fiber holdings in order to control more of the world's telecommunications traffic. The company also boasts strong cash flow from operations, solid margins, outstanding return on equity, increase in net income and solid financial position with reasonable debt levels by most measures.
Potential Buyers
Level 3 Communications’ growth, financial flexibility, valuation and strategic options make it a top pick. Several Analysts opine that leading cable MSO Comcast Corp. (CMCSA - Free Report) and tech-giant Alphabet Inc. (GOOGL - Free Report) could be the potential buyers.
Since Google is on the verge of expanding its fiber-optic network globally and has also signed a network interconnection agreement with Level 3 Communications in Jan 2016, it is likely to forward a bid for the buyout.
If rumours are to believed, Level 3 Communications may soon be acquired by Comcast in order to compete against U.S. telecom behemoths AT&T Inc. (T - Free Report) and Verizon Communications Inc. (VZ - Free Report) .However, nothing concrete has appeared so far.
Similar Other Agreements
Other U.S. telecom behemoths who are entering into much alike treaties are Verizon acquiring XO Communications partly to obtain the company's fiber holdings and Crown Castle International Corp.’s (CCI - Free Report) purchase of Quanta Services' Sunesys.
Level 3 Communications currently has a Zacks Rank #3 (Hold).
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Is Level 3 Communications Up for Strategic M&A or Buyout?
Leading U.S. fiber-optic network service provider, Level 3 Communications Inc. , is supposedly looking for strategic alternatives to maximize its shareholders’ value. Consequently, its share prices went up 3.55% to $56.30 on Jul 13. It is assumed that the company will either opt for a merger & acquisition (M&A) transaction or stock buyout considering its significant fund balance. However, nothing definite has been announced so far.
Strengths
Level 3 Communications has a strong presence in several fields of enterprise networking including data networks, content distribution, managed services, securities, voice cloud and cloud connection. The company stands to benefit from the ongoing trend of large enterprise customers shifting to IP and fiber-based network architecture. The company has also been rapidly increasing its fiber presence in the global Ethernet market of Latin America, Europe, Middle East and Asian (EMEA) countries. Thus, the company's fiber network holdings could make it an attractive acquisition target for companies who want to strengthen their fiber holdings in order to control more of the world's telecommunications traffic. The company also boasts strong cash flow from operations, solid margins, outstanding return on equity, increase in net income and solid financial position with reasonable debt levels by most measures.
Potential Buyers
Level 3 Communications’ growth, financial flexibility, valuation and strategic options make it a top pick. Several Analysts opine that leading cable MSO Comcast Corp. (CMCSA - Free Report) and tech-giant Alphabet Inc. (GOOGL - Free Report) could be the potential buyers.
Since Google is on the verge of expanding its fiber-optic network globally and has also signed a network interconnection agreement with Level 3 Communications in Jan 2016, it is likely to forward a bid for the buyout.
If rumours are to believed, Level 3 Communications may soon be acquired by Comcast in order to compete against U.S. telecom behemoths AT&T Inc. (T - Free Report) and Verizon Communications Inc. (VZ - Free Report) .However, nothing concrete has appeared so far.
Similar Other Agreements
Other U.S. telecom behemoths who are entering into much alike treaties are Verizon acquiring XO Communications partly to obtain the company's fiber holdings and Crown Castle International Corp.’s (CCI - Free Report) purchase of Quanta Services' Sunesys.
Level 3 Communications currently has a Zacks Rank #3 (Hold).
LEVEL 3 COMM Price
LEVEL 3 COMM Price | LEVEL 3 COMM Quote
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