(AP) – Windstream is buying rival EarthLink for about $673 million in
stock as internet service providers try to bulk up and cut costs with revenue
under pressure.
Revenue at EarthLink, which reported earnings as well Monday, fell 13 percent
in the third quarter.
Both companies provide internet service, cloud computing and other services.
The combined company will keep the Windstream name and be based at its
headquarters in Little Rock, Arkansas. EarthLink Holdings Corp. is based in
Atlanta.
EarthLink shareholders will receive 0.818 of a share for each EarthLink stock
they own. Windstream Holdings Inc. will issue about 93 million shares for the
deal.
The companies value the deal, expected to close in the first half of next
year, at $1.1 billion when debt is included.
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