Level 3 to Buy TW Telecom in Deal Valued at $5.7B

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June 16 (Bloomberg) -- Level 3 Communications and TW telecom are in a definitive pact to qualify as tax-free reorganization. Cory Johnson reports on Bloomberg Television’s “Bloomberg West.” (Source: Bloomberg)

This is a big one.

$6,915,000,000. the current enterprise value of time warner telecom.

Separate from time warner cable -- time warner cable?

Right.

They kept the hbo business years ago, but now they have spun off.

This is an internet service provider focused on business.

Vehicle ira, level three, is one of the largest internet act companies.

This was long thought to be a target of comcast.

While at&t and direct tv might be happening, level three acquiring this telecom means that one of the biggest backbone companies is trying to acquire one of the biggest internet service providers.

More consolidation within the industry, allowing one company to control things from stem to stern in terms of innovation across the internet.

So much movement happening in this debate in the arena of net neutrality and the sec looking into the spot between netflix and verizon.

How much are people in hollywood paying attention?

They are watching.

Cbs, nbc, they are all customers of level three.

The reaction to the deal was that it was good for level three, but what the businesses wind up paying is part of the same conversation that netflix might have about what they have to pay comcast for access to broadband.

Imagine netflix or hulu, looking at it and saying that you have a deal to get information out faster to get ahead of us, now we can pay level three or we lay -- pay level three to get those services out beyond that.

That is the kind of thing that a are going to allow to get this deal approved.

All right, george -- cory johnson, thank you.

This text has been automatically generated. It may not be 100% accurate.

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