Level Up (NASDAQ: LVLT)

NEW YORK - Level 3 Communications leveled up this morning after it agreed to buy Global Crossing Ltd. for $1.9 billion. Level 3 will acquire Global Crossing with stock, meaning the company will nearly double its stock count from 1.7 billion to 3 billion. Level 3's CEO Jim Crowe will head the company.

The two currently have combined revenues of $6.26 billion; they believe the deal will also allow them them to reduce capital spending. The deal also helps reduce supply which both companies think will help them increase prices. Both companies have been very unprofitable over the years. Level 3 lost $622 million last year while Global Crossing's lost $172 million. Global Crossings and Level 3 have not been profitable in the last 7 years, in fact LVLT has never been profitable.

In 2002 Global Crossings filed for bankruptcy but the company was saved by a loan from Warren Buffett, the legendary investor from Omaha, Nebraska. At the time he invested in Global there was speculaiton that Level 3 may buy out the firm. Today Level 3 finally beat the game.