CenturyLink (NYSE:CTL) struck a deal to acquire Level 3 Communications (NASDAQ:LVLT) on Monday, 10/31/16. LVLT shareholders will receive $26.50/share and 1.4286 shares of CTL stock for each Level 3 share. Why would LVLT make this deal given the potential if they could achieve their revenue growth goals of 1.5 to 2% sequential growth. I think it's obvious (for me) they hit a wall and could not meet these goals going forward. Management must have concluded zero to negative growth in 2016 and less than 1% sequential growth going forward, possibly much less. I can't know for sure but this forward view would justify the structure of this deal IMO.
Disclosure: I am/we are long LVLT.