Level 3 Communications rose 90 U.S. cents to $11.65 in morning trading Monday, after announcing what it called a “multi-year, multimillion-dollar” agreement with Yahoo! (Nasdaq: YHOO).
The Denver, Colorado-based high-speed communications service provider saidYahoo! will use its CrossRoads Internet access to deliver digital contentand streaming applications. The deal includes the core Yahoo! services, Yahoo! Broadcast and Yahoo! Finance Vision.
Level 3 president and chief operating officer Kevin O’Hara said that theagreement expands on an existing alliance the company has with Yahoo! inNorth America and Asia.
Level 3 said its customers will benefit from the alliance, as they will be”just one hop away” from Yahoo!.
Level 3 provides Internet services, including broadband transportand co-location services, to media companies.
Last week, the company said that it would cut about 325 jobs, or 6 percent of itsworkforce, over the course of the next few weeks. However, the company also said it expects its overall workforce to grow during the year, as it hires more people for sales and network operations.
In March, Level 3 predicted communications revenue of $360 million to $370million for the first quarter ended March 31st. The company cited its”unique competitive position” and “continuing strong demand” for itsservices as reasons for not scaling back its projections for the quarter,even as many of its competitors weighed in with predictions of shortfalls.
Also in March, the company announced a $400 million incremental loan. JP Morgan, Goldman Sachs, and Morgan Stanley Dean Witter acted as lead arrangers for the loan.