October 11, 2002 -- (WEB HOST INDUSTRY REVIEW) -- According to reports released Thursday, struggling Internet services company Genuity is in discussions with telecommunications carrier Level 3 Communications for the sale of some or all of Genuity?s businesses.
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An announcement about the deal is reportedly expected to come soon.
A deal between the two companies would hurry the consolidation of the telecommunications industry and give Level 3 a powerful presence in the managed hosting services business. A deal could also help Genuity free itself from a growing pile of debt and avoid a possible bankruptcy filing. Genuity?s last credit extension expires on Friday.
Level 3 has already publicly announced its intention to use its recently-acquired $500 million investment for acquisitions.
And a deal with Genuity would reportedly offer a number of synergies that could be taken advantage of, including AOL as a major customer for both companies. The acquisition would also help Level 3 move up into the managed hosting services arena, a likely objective for the company.
