
CenturyLink in Advanced Talks to Merge with Level 3 Communications - JumpCrisscross
http://www.wsj.com/articles/centurylink-in-advanced-talks-to-merge-with-level-3-communications-1477589011?em_pos=small&ref=headline&nl_art=2
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webscaleizfun
Seeing as how Google and other major content providers have moved to peering
with consumer & business ISPs directly, and bought trans-pacific fiber and
built datacenters all over Europe, Asia and South America to bring content
closer to end users, I see how both Centurylink & Level 3 are in a weakened
state. Both made tons of money shuttling data around on behalf of Netflix and
others, and now Level 3 has taken a back seat, and Centurylink has been
reduced to a last mile ISP.

Even on the consumer & small business front Centurylink seems to be scared,
Portland is fiber only now, along with most of Seattle, only a decade after
Verizon did the same thing just prior to selling the suburbs around Seattle.

How long will the merged company be viable? Will it descend similar to
AMD/ATI's post merger valuation (combined value was much lower) while
forestalling further, more substantial value loss?

With the rise of Internet Exchanges in Asia & South America, perhaps all that
is left for these two tier one networks is rent seeking from content providers
for access to consumers on Centurylink's network.

