Several weeks ago, XO Holdings (news, filings) announced its vehement opposition to the pending merger of Level 3 and Global Crossing, citing the combined entity's likely outsized influence on the IP transit marketplace. Today however, according to this joint filing with the FCC, XO no longer objects. Here's the text of the letter:
Level 3 Communications, Inc. ("Level 3") and XO Communications, LLC ("XO") write to inform the Commission that they have reached an agreement that addresses all of XO's concerns raised in its comments to the Commission about Level 3's acquisition of Global Crossing Limited in the above-referenced proceeding. As a result, XO believes that the transaction is in the public interest and should be approved by the Commission.
My, that was fast. While I'm sure they will never tell us, my guess remains that XO's real aim here was some change to their peering agreement with Level 3. And I'm guessing that they in fact managed to get enough of what they wanted to call off the dogs. Why? Because, frankly, a few peering details with XO are probably not material to Level 3's overall results, and the smooth closing of the Global Crossing most certainly is. On the other hand, it's just a guess on my part -- I don't actually know anything here... 🙂
There is still the DOJ second request to deal with, but Level 3 and Global Crossing are quite obviously out there crossing t's, dotting i's, and lining up ducks 24 hours a day to make the merger happen. They added two more pieces to the puzzle in the past few days. On Wednesday, they lined up the remainder of the funding in the form of a$650M expansion of their existing credit facility. And yesterday both companies' shareholders voted in favor of the merger.