For those interested in the matter, this article outlines the reasons and the factors behind the recent asset sales, but also on the whole wave of Windstream sell-offs that occurred recently. I would like to get some opinions on this, on this board.
https://finance.yahoo.com/news/windstream-holdings-330m-asset-sale-161445498.html
This business unit was always expected to be sold - it took a while because management wasn’t getting the price they were looking for. I believe the company will continue to raise cash through asset sales (other than dark fiber, not sure what else) while the company refocuses on core growth go forward products and associated systems consolidation (sd -wan, UCaaS, on net, fixed wireless and security) materializes. My big worry is the system consolidation- customer will feel it and laying more people off ain’t gonna help and hiring New has a ramp.
When the Zombie executives make decisions that actually make sense - selling off the Earthlink internet portion - then Wall Street actually takes them seriously. Maybe TT and his minions can make more decisions that keep the stock climbing?
But instead they will again probably get arrogant and bet the house on another sinking company in the telecom industry. The company could be doing so much better if the leadership team made decisions that made sense...
Won't this sale hurt their total 'broadband' subscribers numbers that they proudly claim is healthy during their quarterly comedy presentations? Most were probably dial-up, but I remember Earthlink was selling hi-speed Internet as well in the early 2000's.
It buys them a few more months to sale more distressed assets they own. It’s will be sold piece by piece to any takers.
That recent sale of EarthLink residential will go to the lawsuit they lose soon.
You cannot have a successful company when the Senior Leadership is despised by 90% of the employees. Apparently this concept is beyond the Board of Directors to comprehension level!
Regarding the asset sales - Windstream was buying these companies to either increase customer base, use purchased company tax credits for write off purposes or proclaim huge synergy savings potential. The actual results are customers leave once their contract term ends, tax write offs lost potency due to recent tax law changes and the synergy savings never materialize.
Perhaps the employee morale concept is too difficult for the Leadership to understand so lets parallel it to eating at a favorite restaurant. If you continuously fail to leave your server a tip will they A) ensure your service and food quality is of the highest quality or B) avoid having you sit in their section and then tell the cooks in back to make their food 'special'. Windstream is currently the restaurant patron that nobody wants to serve.
Good job Tony and HV Bob! That will do piggies, that will do!
1 billion for both earthlinks...the .com and the .net sides. WS only sold part of the company off...the part is said it was going to cut out from the beginning....do your numbers before spreading bullsh!t...you will see it was a good sized win for WIN
Actually...
ONE BILLION DOLLARS!
https://www.fiercetelecom.com/telecom/windstream-acquires-earthlink-for-1-1b-creates-145k-fiber-route-mile-network
That side wasn't wanted to begin with...bought that part for around 220 mil to 240 mil....sold it for 330 mil....it was dying and they still sold it for profit....now I hope the pay down debt with that money