Level 3 CDN Provider to be Acquired by CenturyLink
By Stephen Brown | | 0
Level 3 CDN is a content delivery network provider based in Broomfield, Colorado, in the US. As one of the largest and most popular CDN providers, they boast some of the world’s biggest companies as their clients. With a comprehensive global network of high speed points of presence (PoPs), the Level 3 CDN is amongst the best content delivery networks available.
Because of this, CenturyLink, a US telecommunications company, has recently begun proceedings to acquire the Level 3 CDN provider for US$34 billion. This is set to make the company the second largest service provider in the US, behind AT&T.
By acquiring Level 3 CDN, CenturyLink’s customers will have access to their CDN, which has a presence in more than 60 countries, as well as 200,000 route miles of fibre and more than 42,000 on-net buildings. Overall, the deal looks set to be great news for both
Level 3 CDN Benefits
“If we look at the network synergies, and part of the $975 million, it’s moving off-net expenses to on-net,” said Jeff Storey, CEO of Level 3, speaking during a panel at the Citi 2017 Internet, Media & Telecommunications Conference. “While it actually involves capital to do that, it’s another growth initiative because it saves our money and improves our gross margins, but it also gives a better experience to our customers.”
“This is a compelling transaction for our customers, shareholders and employees,” continued Storey. “In addition to the substantial value delivered to shareholders, the combined company will be uniquely positioned to meet the evolving and global needs of enterprise customers.”
Stewart Ewing, CFO of CenturyLink, told investors that about 40% of the operating expense savings for the telco are on the network side, stating, “a big part of that expense is getting customers off third-party networks and getting customers on our network so you can provide a better customer experience. It costs us less because the network is there and it’s ours and it takes revenue away from a competitor.”