Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Global Crossing Limited (Nasdaq: GLBC) popped 79% in intraday trading today after agreeing to be acquired.

So what: Global Crossing agreed to be acquired by Level 3 Communications (Nasdaq: LVLT) for $1.9 billion, which values Global Crossing at $23.04 a share. Level 3 will assume about $1.1 billion of Global Crossing's debt.

Now what: Both companies have posted annual losses for at least five years. The companies estimate the merger will generate cost savings of $2.5 billion, resulting in earnings of about $1.6 billion for the combined companies.  The combined companies may also benefit from more rational pricing in the industry, which could boost revenue and be an additional positive for earnings.  

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