Rob Powell has a couple of interesting posts over on the Telecom Ramblings blog about Global Crossing's UK unit being up for sale. Rob speculated about potential buyers in a post the next day, including the possibility that Level 3 Communications might buy the unit, or the whole company, but worried that LVLT isn't operationally or financially ready to make that purchase yet.
Then came yesterday's Level 3 Annual Stockholders Meeting, in which CEO James Crowe said that Level 3 is open to doing the right acquisitions in Europe or in content delivery networks. Could it be the Level 3 is on the hunt again, and this time the prey is Global Crossing UK? Or is Limelight in the crosshairs?
Frankly, I don't see either happening until Fall. What was missing from Crowe's remarks was the subtext 'If we could raise the money right now, but money is currently expensive.' Also, I have a hard time making the numbers work for a buyout of any of the CDNs out there.
I do think that LVLT really would like to take GLBC and XO out of the game if they could, so if they finally get past this rough spot I expect they will try.
Posted by: Rob Powell | May 22, 2008 at 06:27 AM