\tA major AT&T investor demanded change, claiming a series of missteps by management and ill-judged focus on M&A have hindered the operator’s performance.<\/p>\n
Activist investment company Elliott Management, which owns a $3.2 billion stake in AT&T, sharply criticised what it called \u201cquestionable\u201d decisions and poor execution at the operator’s wireless division.<\/p>\n
It picked apart AT&T’s acquisitions of DirecTV [1] and Time Warner [2], along with an attempted purchase of T-Mobile US [3] in 2011. It noted the operator is “yet to articulate a clear strategic rationale for why AT&T needs to own Time Warner” and lamented that concessions related to the failed T-Mobile deal helped create a powerhouse competitor.<\/p>\n
The investor pressed the operator to halt \u201cdistracting\u201d M&A activity; shed non-core assets; substantially cut operational costs; continue paying down debt; and grow shareholder dividends. \u201cAny assets that do not have a clear, strategic rationale for being part of AT&T should be considered for divestment,\u201d including DirecTV, its wireless business in Mexico and pieces of its fixed footprint.<\/p>\n
It added the transition to 5G offers AT&T \u201ca renewed opportunity to reset the wireless narrative and reclaim market leadership,\u201d but will require \u201cmeaningful investment and improved execution\u201d.<\/p>\n
\u201cAnything less and AT&T risks missing this opportunity and falling behind again.\u201d<\/p>\n
Work in progress
\nIn a statement to Mobile World Live, an AT&T representative said it will review the proposals, but noted the operator is \u201calready executing\u201d on several suggestions outlined in the letter.<\/p>\n
Earlier this year AT&T sold off its stake in video streaming service Hulu [4] and property in New York City, and revealed plans to sell tower assets in the US and Mexico [5] to reduce its debt. Reuters reported it was also considering the sale of its Puerto Rico unit [6].<\/p>\n
The representative added AT&T\u2019s strategy is \u201cdriven by the unique portfolio of valuable businesses we\u2019ve assembled across communications networks and media and entertainment”.<\/p>\n
“We believe growing and investing in these businesses is the best path forward for our company and our shareholders.\u201d<\/p>\n[1] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/att-moves-fast-with-new-converged-plan-following-directv-deal\/
\n[2] https:\/\/www.mobileworldlive.com\/featured-content\/home-banner\/att-closes-blockbuster-time-warner-deal\/
\n[3] https:\/\/www.mobileworldlive.com\/latest-stories\/att-and-t-mobile-usa-end-39b-deal\/
\n[4] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/att-offloads-hulu-holding-to-pay-debt\/
\n[5] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/att-towers-on-the-chopping-block\/
\n[6] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/att-explores-puerto-rico-sale-to-cut-debt\/<\/p>\n","protected":false},"excerpt":{"rendered":"
A major AT&T investor demanded change, claiming a series of missteps by management and ill-judged …<\/p>\n
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