CenturyLink and Level 3 Communications may merge in an effort to create a giant in the business telecoms market.
The two companies are in advanced talks about a merger, with a deal possibly set to be announced in the next few weeks, according to the report in the Wall Street Journal.
There was no information available about what such a deal would look like.
CenturyLink is worth $16.81 billion while Level 3 is worth $18.66 billion.
Since the report was announced CenturyLink shares have risen 11 percent, as have Level 3 shares.
Both companies are based in the US and have operations covering telecoms and internet service provision.
CenturyLink provides communication and data services to residential, business, governmental and wholesale customers, while Level 3 provides services to businesses. The deal could combine Level 3’s enterprise services with CenturyLink’s network.
CenturyLink posted second-quarter 2016 adjusted earnings per share of 63 cents, surpassing the Zacks Consensus Estimate of 59 cents. GAAP net income was $196 million
In CenturyLink’s Q2 financial results released in August 2016, the company got $2.597 billion from its business segment, around 60 percent of its total revenue of $4.398 billion.
For Level 3, total revenue was $2.056 billion for the second quarter 2016, compared to $2.061 billion and $2.037 billion, on a reported and modified basis, for the second quarter 2015 respectively.
Late last year CenturyLink suggested that it might sell its entire off its global data centre fleet to move towards the network, hosting and managed services.
CenturyLink owns five data centres in the UK consisting of campuses in London Docklands, Slough and Reading. It currently owns 59 data centres in North America, Asia and Europe with more than 185 MW of power across 2.6 million sq ft of total raised floor capacity.
In October, Reuters reported that CenturyLink was nearing a deal to complete the sale.
