Global Crossing seeks growth through acquisitions
CEO expects new wave of consolidation in next 18 months
Five years after emerging from bankruptcy-court protection and changing its business focus, Global Crossing Ltd. is now mulling over possible mergers and acquisitions, reports The Wall Street Journal
Global Crossing on Wednesday reported a net loss of $71 million for the third quarter, compared with a loss of $89 million in the same period a year earlier. The company said it turned cash-positive, generating $28 million in cash.
Once vilified alongside Worldcom Inc. and Enron Corp., the Bermuda-based company now handles conference calls for Sun Microsystems Inc, reservations traffic for Delta Air Lines Inc., and social-networking activity for MySpace.
Global Crossing has boosted its customer base by shifting away from selling bandwidth to telecommunications carriers and toward providing corporate telecom networks. With an Internet-based network that is cheaper to run than many of its rivals, Global Crossing pitches itself as a low-cost alternative to telecom giants such as AT&T Inc. and Verizon Communications Inc.
Global Crossing Chief Executive John Legere said he expects a new wave of consolidation in the next 18 months, of which he wants Global Crossing to be part. "We've been in talks with everyone," he said.