TelephonyOnline has an article today quoting Dan Caruso of Zayo and of course neighbor blog BearOnBusiness. The comments seem to have come from a presentation at some industry event, but the article doesn't say precisely which one. The crux of his point is one I certainly agree with, that the fruitfulness of Zayo's shopping spree has been enhanced by the distraction of other buyers. And as he says, this phase is probably coming to an end soon.
But one could argue that the buyer's market has become less favorable throughout 2008, not because of more competition but because of the state of the credit markets. I think some of these companies, especially TWTC, would have made a move by now if money weren't so expensive, and I doubt even Zayo can get much cheap money right now. Level 3 probably won't be ready for M&A until Xmas, but Global Crossing could conceivably be a buyer if money weren't so tight. I could see them making a move on Abovenet, whose NFL-city metro assets probably fit their large enterprise customer base in the USA better than any other set.
I do wonder though if Zayo is temporarily through with M&A or if perhaps they have that final one in the wings that will make them a national player rather than a regional one. The McLeodUSA fiber or perhaps the remains of 360Networks seem to fit that bill quite well.
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