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Qwest Merger with US West

  • B. Rajesh Kumar
Chapter
Part of the Management for Professionals book series (MANAGPROF)

Abstract

In the year 2000, the company completed the acquisition of US West. On June 30, 2000, US West merged with Qwest. The US West brand was replaced by the Qwest brand. On April 1, 2011, Qwest merged with CenturyLink. After the merger completion, Qwest brand was replaced by the CenturyLink brand. On announcement bid, Qwest stock price fell by more than 20%. The initial offer was valued at $35 billion. The initial offer of Qwest was rejected by US West as the latter reaffirmed its willingness to Global Crossing. Qwest increased its offer price to $69 a share for US West and $68 a share for Frontier. The renewed deal offer to US West was valued at $48 billion. Global Crossing’s offer had been $11 billion for Frontier and $30 billion for Qwest. Soon Qwest and US West reached an agreement to acquire US West. As a part of the deal, Qwest agreed to forego providing long-distance service in US West’s territory. Qwest added about 25 million customers and regional phone networks to it kitty as a result of its merger with US West. The combined company had a market capitalization of approximately $85 billion. The merger brought together one of the six largest and oldest local phone carriers and the next-generation long-distance carrier, thereby creating a giant company for the delivery of high-speed data, video, and voice transmissions

References

  1. Bloomberg News (1999) Qwest Expected to Buy US West; Global to Acquire Frontier. http://articles.latimes.com/1999/jul/17/business/fi-56766. Accessed 25 January 2018
  2. Bloomberg News (2000a) Qwest completes merger of US West. https://www.nytimes.com/2000/07/03/business/qwest-completes-purchase-of-u-s-west.html. Accessed 25 January 2018
  3. CBSMARKETWATCH.COM (1999) Telecom saga ends; Qwest wins US West. https://www.marketwatch.com/story/telecom-saga-ends-qwest-wins-u-s-west. Accessed 25 January 2018
  4. CenturyLink News Release (2010) CenturyLink and Qwest agree to merge. http://news.centurylink.com/2010-04-22-CenturyLink-and-Qwest-Agree-to-Merge. Accessed 25 January 2018
  5. CenturyLink Website (2018) www.centuryLink.com. Accessed 25 January 2018
  6. Funding Universe (2018) Qwest Communications International Inc History. http://www.fundinguniverse.com/company-histories/qwest-communications-international-inc-history/. Accessed 25 January 2018
  7. Vuong A (2011) The DenverPost. CenturyLink completes purchase of Qwest. https://www.denverpost.com/2011/04/01/centurylink-completes-purchase-of-qwest/

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • B. Rajesh Kumar
    • 1
  1. 1.Institute of Management TechnologyDubaiUnited Arab Emirates

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