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Level 3 Sells Vyvx Unit

Level 3 Communications Inc. said on Thursday it has shed the advertising distribution business of Vyvx LLC, as it first announced in December.

Level 3 is, however, keeping Vyvx’s broadcast unit. That division includes all of the content distribution capabilities within the Vyvx Services Broadcast Business, which is critical to Level 3’s CDN strategy.

Level 3 Focuses on CDN

“The Vyvx Services Advertising Distribution Business is not core to Level 3’s strategy as it relies primarily on satellite and physical dub and ship methods for distribution and does not utilize the Level 3 network to deliver content to end destinations,” Brady Rafuse, president of Level 3’s Content Markets Group, explained on Dec. 19, 2007. “We are focused on services that enable the distribution of large volumes of content over the Level 3 network.”

Level 3 sold the advertising distribution division to DG FastChannel Inc., a digital media services company. DG FastChannel paid $129 million in cash, Level 3 said, noting it will use the proceeds for opportunities “more central” to the communications business.

DG Fast channel sells digital media services to advertisers; its network reaches more than 4,100 television and cable broadcasters, as well as radio stations.

Level 3’s stocks were up 54 cents during late-afternoon trading, at $4.44. DG FastChannel shares also were higher, up 13 cents to $20.50.


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