I heard this a couple of times during the earnings call, but not clear on what legacy means , and spinning off to where?
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Look up when Sprint Spun Off its local division in the mid 2000's after they bought Nextel for more in. The local side was supposed to collapse, yet its worked 180 degrees the opposite.
Legacy T Execs were gone a long. long, time ago my friends....Any legacy folks currently Execs were not Legacy Execs when SBC bought the company....A small handful moved up quickly after SBC bought the company and only a handful or less still here and were definitely not Execs before SBC bought T. Nice try though...It is a 50-50 split.....50% jumped ship and the other 50 let go...A lot of T folks around shake their heads at those who moved up during SBC tenure...
Complete BS. There is nothing mentioned in the earnings call of anything related to spinning of legacy. Go to seeking alpha and read and search the transcripts. More trolls doing what they do!
Most of these comments have half the information wrong.
Last I heard they moved Mobility,Power and Central office into one unit why is that, Hmmmm
A shell game to hide the debt.
This is along the lines of Time Warner spinning off it's publishing unit a few years ago when it was dying. Share holders were given stock in the new company and it only lasted a few years before it was acquired by another company. Nothing but bad news for the employees that were spun off or the stock price of the new company.
dfe
i too remember it all too well ... cant recall what it peaked at, but it was <1% of my mental sell it now target to cash out quick ... I became a buy and hold investor after that pain.
That last comment should have read as "It traded ABOVE its original IPO price of $29.50 for exactly one day and I ......".
I bet there are a few people still around who remember that.
From what I read here, it sounds like a replay of the old legacy At&t Wireless of the early 2000s. This was during the C. Michael Armstrong era.
The legacy At&t Wireless went public as a tracking stock. It traded about its original IPO for exactly one day and I lost my a$$ shortly thereafter.
You know strangely enough legacy At&t was heavily in debt at that time also after buy Comcast and other Cable companies.
It looks like we are right back where we were 20 years ago almost to the day. I won't be buying any of the Tracking Stock if/when it goes public this time. I won't live long enough to recover from another CF like the last one.
But, it does feel like something like that may be in the offing.
What a mo–nic comment about Legacy AT&T. All of the decisions over the last twenty years have been made by the controlling company SBC. Legacy T was acquired for its name, but every thing else has been done by the Bell Companies.
Is this the sort of shenanigans that Enron did with it's Special Purpose Entities?
Wireline being shifted to a different company to reduce debt log, , so if you are in wireline, you better try and go to the wireless or entertainment side while you still can.
The baby bells were doing fine under SBC until we merged with AT&T legacy. Instead of firing all legacy executives for running their company into the ground, we allowed those yahoos to make decisions and now they’re running the company into the ground.
Surprised?
The financial wizards want to spinoff the wireline side into a separate company and load it up with debt. Classic vulture capital move by outfits like Eliot’s. The “new” company would then be allowed to die off and free up ATT from the debt. Shady move that will greatly negatively impact any employees involved.