Two major players in the U.S. telecom space are set to wed, if all goes well with CenturyLink’s $10.6 billion purchase offer for Qwest.
The deal, which will also entail CenturyLink taking on $11.9 billion in Qwest’s debt, would see the No. 5 U.S. carrier purchasing the third-largest player — potentially reshaping the entire competitive landscape. VoIP Planet takes a look at the merger’s implications, including its potential impact on consumer and enterprise customers, and what’s to become of the Qwest brand name.
The U.S. communications landscape may be poised to change with the country’s No. 3 carrier, Qwest, having agreed to be acquired by CenturyLink, the nation’s fifth largest telecommunications player, in a deal valued at $22.4 billion.
Under terms of this morning’s proposed purchase, Qwest (NYSE: Q) shareholders will receive CenturyLink (NYSE: CTL) stock in a transaction that values Qwest shares at a 15 percent premium over its closing stock price on April 21, for a total of about $10.6 billion in stock. CenturyLink will also assume $11.9 billion worth of Qwest’s outstanding debt, it said.