CenturyLink Inc. is in advanced talks to merge with Level 3 Communications Inc., the Wall Street Journal reports. The deal would be the latest instance of consolidation in the competitive telecom sector.
While the terms of the tentative deal were not reported Level 3 had a market value of $16.8 billion before the merger talks came to light, while CenturyLink was valued at $15.2 billion.
Level 3 operates one of the world's largest internet backbones. CenturyLink, meanwhile, is a telecommunications company that has bulked up through a number of acquisitions in recent years. It's moved into hosting and cloud services and operates more than 55 data centers. A merger between the two companies would be in line with other CenturyLink acquisitions, such as Qwest and Savvis, which helped boost its enterprise business.