CenturyLink-Level 3 deal closes following FCC approval

CenturyLink closed its $34 billion acquisition of Level 3 following FCC approval. With the acquisition, CenturyLink – the nation’s fourth largest telecommunications company with a global network serving business customers and local networks in 22 states – becomes the nation’s second largest US carrier serving enterprise business customers.

While the acquisition passed at the FCC, Commissioner Clyburn dissented and Commissioner Rosenworcel dissented in part. Both commissioners took issue with the way the Commission approved it. “Instead of using the agency's decades-old merger review standard, it arbitrarily introduces a new one,” Commissioner Rosenworcel wrote. “This departure from the traditional merger balancing test should properly be the subject of public notice and comment. Our failure to do so is at odds with the most basic principles of administrative law. Moreover, I worry that our capricious disregard for precedent is simply part of a larger effort to speed the way for the next billion dollar transaction before us,” likely referring to the Sinclair-Tribune merger.

Links:

FCC Clears CenturyLink-Level 3 Combination (Wall Street Journal, Oct. 30, 2017)

FCC Approves CenturyLink-Level 3 Transaction (FCC, Oct. 30, 2017)

Statement of Jessica Rosenworcel on the CenturyLink-Level 3 merger (FCC, Oct. 30, 2017)

Statement of Mignon Clyburn on the CenturyLink-Level 3 merger (FCC, Oct. 30, 2017)