Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, July 5, 2019

Article Excerpt

CENTURYLINK INC., $11.77, symbol CTL on New York, is the second-largest U.S. communications provider to global corporate customers in more than 60 countries. In mid-May 2019, CenturyLink announced that it would undergoing a strategic review of its entire business to see if it could generate more value for shareholders. Among the possibilities under consideration was the sale or spinoff of the company’s consumer broadband business. Since acquiring Level 3 in late 2017 for $34 billion, CenturyLink has become more focused on the corporate side of the telecom market. The consumer business now accounts for less than 25% of its overall revenue. In the three months ended March 31, 2019, the company’s overall revenue fell 5.0% to $5.65 billion, from $5.95 billion a year earlier. Sales were lower across all five revenue categories, including its consumer business. Excluding one-time items, CenturyLink made $360 million, or $0.34 a share, in the latest quarter. That was up 37.4% from $262 million, or $0.25. The increase was…

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