Windstream, EarthLink announce telecom merger

EarthLink (ELNK), which is based in Atlanta, is an information technology services, network and communications provider.

"In our work with Tony and his team, it's become clear that we are two companies on parallel paths. We've both made significant progress as evidenced by our improving financial results and strengthening balance sheets," EarthLink CEO and president Joe Eazor, said in a written statement. "Now is the right time for us to come together. We look forward to working with the Windstream team to better serve our customers in a world that is becoming more network-centric every day."

The announcement came as EarthLink reported Monday that earnings fell 13% in the third quarter.

EarthLink shareholders will receive 0.818 of a share for each EarthLink stock they own. Windstream Holdings Inc. will issue about 93 million shares for the deal.

The combined firm will be called Windstream and be based in Little Rock.

Contributing: The Associated Press. Follow Todd Clausen on