February 3, 2005 — (WEB HOST INDUSTRY REVIEW) — Qwest Communications (qwest.com) is reportedly in talks with MCI (mci.com) about a potential six billion dollar takeover, creating the possibility for another major telecommunications sector merger.
r
r
MCI is said to be considering the Qwest offer, but may hold out for a more lucrative one. The company has reportedly been involved in preliminary discussions with Verizon Communications (verizon.com), which has not yet decided on whether it will make a formal bid or not.
r
r
MCI, reports say, has been looking for a buyer for several months. However, the recent SBC acquisition of AT&T appears to have intensified the pursuit of MCI.
r
r
Like AT&T, MCI is an attractive asset because of its extensive national infrastructure and strong corporate customer base. MCI also has strong Web hosting capabilities, bolstered by a strong enterprise hosting base built through its acquisition of Digex.
r
r
Qwest is worth approximately $7.7 billion, but reportedly has $17.2 billion in debt.
r
r
MCI, Qwest and Verizon have all turned down media requests for comment.
