CenturyLink announced it was acquiring Level 3 Communications and now its stock is tumbling.
Early Monday, the communications provider announced a deal to buy Level 3 in a merger with a total deal value of $34 billion.
“The digital economy relies on broadband connectivity, and together with Level 3 we will have one of the most robust fiber network and high-speed data services companies in the world,” said CenturyLink CEO Glen Post in the deal announcement.
The deal will also see the combined company save over $900 million in cost-cutting synergies, according to the press release announcing the move.
Following the news, the stock is down about 10% at $27.38 a share as of 10:10 a.m. ET.
The dramatic drop coming directly after the announcement could be an indication that investors are not big fans of the deal.
- Markets Insider