On a week when the Dow Jones was up 1.5%, Level 3 Communications was up 7%. What gives? Rumours that Level 3 is “exploring strategic alternatives”. That may well mean it is for sale, with Comcast (denying) the most likely candidate.
Other industry experts speculate that Level 3 is really more interested in acquiring another telco, such as a Colt or Zayo. After all, Level 3 closed a $5.3 billion purchase of TW Telecom in October 2014 and Global Crossing for $1.9 billion in late 2011.
One industry trend is undeniable: the relentless consolidation in the telecommunications marketplace. Fewer and fewer service providers will continue to have greater and greater market share.