Anyone have an idea of what the severance is looking like post merger. Senior leader hinted to our group 2 months ago it would be comparable to VSP and details would come out shortly. We have heard nothing since. Alex Taylor stated we would be proud of how they handled this merger and all they have done is kept us in the dark and guessing.
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@jb 16 consecutive quarters of broadband sub losses means current levels of EBITDA are likely to decline. EBITDA is also before interest expense, they have significant maturities over the next 5 years, if they have to refinance at higher rates with a declining underlying business that’s not a good story.
The stock trades a 3.5X earnings or something like that in a very expensive overall market. That tells you no one thinks the earnings will hold up. Hopefully consensus is wrong.
I’m confused by your concern about debt.. the combined company’s debt-to-EBITDA ratio would be more than manageable. If anything, they’ll need to grow their headcount to capture higher market penetration. I think sales and frontline are in for a massive headcount explosion. Post merger they can sell more broadly and the supporting cast will need to grow to ensure follow through.
I am probably not as optimistic about the business. Combined company is pushing $100b in debt post merger and will be in trouble if interest rates continue to stay elevated as the debt maturities come due and broadband sub losses continue.
Having said all that I would like to be part of the new company and hopefully be part of a potential turnaround. The problem with that is it’s not up to me and I am not in a position to move. I just want to know what I am looking at if I lose my position so I can plan for the future.
I don’t agree grace should be given at the top of the chain. They love to pat themselves on the back about how great they are to employees and told us how amazing this merger process would be. I guess I was naive to take them at their word. A job loss is a huge disruption to someone’s life and if you want to claim we will be proud and you care about employees so much act like it.
Totally, uncertainty and being not in-the-know feels bad. For what it’s worth, given a picture of a sun on the horizon, what do you see?
I can’t speak for you, but I want to be part of a $28-$30billion EBITDA company that will be a #68 or better Fortune 500 company post merger. I’m not discounting the legitimate discomfort of simply not knowing. But given Cox has always been more than generous in my time here, everyone up and down the chain deserves grace and patience.
Im in the same boat but I see a rising sun that will shine brighter than ever.