Thread regarding AT&T layoffs

Variety slams AT&T and other media companies “being crushed by debt.”

https://variety.com/2019/biz/features/att-disney-comcast-debt-1203107407/

“Begley notes that AT&T — which has about $70 billion in BBB-rated debt that will come due over the next four to five years — is in a tight spot because of the company’s need to maintain investment-grade status and its commitment to paying a sizable annual dividend to shareholders. Simply put, AT&T cannot afford a downgrade for its bonds. Such a move would have a ripple effect throughout the credit markets.

“The high-yield market could not easily absorb that level of debt from one issuer,” Begley says. “That could cause market disruption in the speculative-grade world.”

And there’s this great comment:

“It was clear from the beginning that DirecTV was a bad transaction,” Moffett says. “They were buying an asset at an absurdly high price at what almost everybody understood to be its absolute peak. There was nowhere for DirecTV to go but down. Now they’re paying the price for an ill-advised DirecTV transaction.”

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| 1364 views | | 4 replies (last January 15, 2019) | Reply
Post ID: @OP+X8wxaz5

4 replies (most recent on top)

We should all be nervous. I am not in favor of stock buyback unless its used to contribute to 401ks. There maybe temporary spike in share price but using that money to buy stock IMHO seems benefit company employees more than average shareholders, plus as the article mentioned it uses money that could be used to generate more income for the company. Stay tuned folks, the layoffs will continue indifinety, but layoffs are not going to result in enough savings to alleviate the debt problem. Only higher sales will do that. Making employees nervous will not make them productive as they are too worried about loosing their jobs to be productive enough to increase sales enough to fix the problem. Its a vicious cycle.

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Post ID: @vdr+X8wxaz5

#ATTKarma

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Post ID: @ffg+X8wxaz5

But AT&T has $183b in total debt. With 70b due soon. They have really run the company into the ground. Stock buybacks that had no effect on the stock price and spending sprees on new technologies that they have to sc-ap because they cannot get them to work because of lack org planning and know how.

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Post ID: @rbu+X8wxaz5

Does nobody want the AT&T CEO job? Randall has done such a bad job with these acquisitions that he should have been let go some time ago. Maybe the board can’t find someone better to take the job. If that’s the case I’m nervous.

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Post ID: @yum+X8wxaz5

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