- overcome by debt, it’s sold off for parts
- retreat to a small transport business, wholesale only. Think MVNO and white label later 2 and 3 services.
- goes out of business in the next 5 years (after Stanky has milked it dry and is ready for retirement)
9 replies (most recent on top)
Too much profits to go out of business.
Who would put lipstick in a pig?
The path for the company is crystal clear and has been for the past 5 years….
Surplus every 60 days until EOY 2025 when headcount targets are reached.
Outsource as much as possible.
De-leverage union and contracts.
Move work to contractors at a predictable pace.
Divest business units not meeting minimum margin requirements.
This is the playbook and will continue as normal.
“ Hey folks, just a word about debt since it keeps cropping up on this site”
This post puts lipstick on the pig.
Sell retail, for starters. I’ll buy in to that move.
Hey folks, just a word about debt since it keeps cropping up on this site. Businesses use debt to grow and even though AT&T has plenty of it due to poor attempts at growth, the business is strong enough to service the debt. If the company was close to being in trouble this way, then they wouldn't be telling Wall St. about robust Cap Ex plans for 2024 and keeping the dividend. I'm no fan of Stankey but know enough about business to see that there is no indication that we're going out of business. AT&T is more likely to fight it out with VZ, etc. for single-digit growth in market share and have the stock move "sideways" for quite a while as a result than go bottoms up. Finally, I won't get too far into Bankruptcy but it's not an easy thing to do; you have to demonstrate that your assets can't cover obligations, etc. and that would be hard to do give the positive net income we see each quarter dividend payout. Again, I'm not a shill for JS- just the messenger.
Option 4: Split - Mobility and Everything else (wired/IP/Fiber).
All the debt lands on the everything else (wireline/IP/fiber), declare bankruptcy, gets enough of a bailout to figure out continuing on with critical infrastructure and services that too much of the nation and economy depend on, and becomes very thin as all non absolute critical network parts and functions are sold off or mostly contracted out.
Declaring bankruptcy on that side also opens the door to change and wipe out a lot of things such as union items, retiree items, and other scary areas to thing about. Pensions stop, lot of insurance enrollment and other areas change drastically on saving money.
I just wet my pants because I saw the word "debt".
T is gonna outlive us all!