Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management

    AT&T Split Assured

    By
    eWEEK EDITORS
    -
    May 28, 2001
    Share
    Facebook
    Twitter
    Linkedin

      Call it a victory for the silent majority.

      Before the shouting subsided at AT&Ts annual meeting in Cincinnati last week, holders of 96 percent of the companys shares voted to take a giant step toward breaking up AT&T.

      Under the approved company resolution, simple majority approval — not two-thirds — is all that will be needed this summer “to authorize any merger, consolidation or dissolution of AT&T.”

      To hear Chairman C. Michael Armstrong tell it, the breakup of AT&T into wireless, broadband, business and consumer units is one step necessary to keep the blue-chip stock from “going the way of Western Union.” The long-distance business handed to AT&T by a landmark 1984 court ruling is becoming as obsolete as the telegraph, according to most measures.

      AT&T has struggled to transform itself into a new technology company, handling everything from data to entertainment.

      “We believe our four businesses can better manage shareowner value and compete more effectively as publicly held businesses, each with the focus, speed and flexibility to win in its individual market,” Armstrong said, acknowledging that the fragments of AT&T could more easily vanish into mergers with rival companies.

      With the $83 billion company dissolving right before their eyes, red-shirted union members and AT&T employees hooted and howled in disapproval.

      “I say shame on you, shame on the board for taking a pay raise as you stand before us and eliminate jobs and cut the dividend,” said Marc Jones, president of Communications Workers of America Local 4630 in Wisconsin.

      “My compensation was cut 39 percent,” Armstrong replied. “I want you to know that your chairman did not take a pay raise.”

      While Armstrong and the board endured a parade of finger-wagging employees and institutional investors, the majority stood solidly behind Armstrong. Several shareholder proposals designed to rein in Armstrongs power and income were soundly defeated.

      Moreover, the sea of investors and former employees either did not try to speak or were silenced by a procession of union members and investors concerned not only about their jobs, but about pornography on the cable channel The Hot Network or benefits for gay and lesbian employees.

      For Ralph V. Maly Jr., the CWAs vice president of communications and technology, the latest bust-up appears to be another in a series of failed strategies by top executives.

      “We warned the company about the purchase of TCI [Tele-Communications Inc.],” Maly said. “We knew it would cost millions to do the necessary upgrades, but the company led us to believe that what would surface was a greater future, and our members are paying for that, too.”

      Was Armstrong, who acknowledged a morale problem during the meeting, concerned that the strong employee opposition could derail the breakup?

      “No,” Armstrong said. “I understand their concerns. And after we sit down with them, I think this will go along fine with the union.”

      eWEEK EDITORS
      eWeek editors publish top thought leaders and leading experts in emerging technology across a wide variety of Enterprise B2B sectors. Our focus is providing actionable information for today’s technology decision makers.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×