CenturyLink to buy Level 3 for about $24 billion

Markets Associated Press

CenturyLink is paying about $24 billion to buy Level 3, to expand its telecommunication services for businesses.

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CenturyLink provides internet, TV and phone services to consumers, as well as data and IT services for businesses. Level 3 provides data, video and other communication services to businesses and government agencies.

Level 3 shareholders will receive about $66.50 in cash and a portion of CenturyLink stock for each share of Level 3 they own. The companies valued the deal at $34 billion, when debt is included.

The combined company will be based at CenturyLink's headquarters in Monroe, Louisiana. Level 3 is based in Broomfield, Colorado.

Shares of CenturyLink Inc. fell 6.7 percent to $38.35 before the stock market opened Monday, while Level 3 Communications Inc. shares rose 6.8 percent to $57.70.