AT&T Sold After 120 Years
After 120 years of business, AT&T has been sold to SBC Communications for $16 billion.
It is still up in the air as to whether the AT&T name will replace SBC or not.
“We obviously need a few days to figure all this out because this (deal) came together kind of quick,” Edward Whitacre Jr., SBC’s chairman and CEO. “But, it’s a great name. It’s not going away.”
Many are predicting job cuts based on the fact that neither both companies have been reducing jobs for some time.
“Both companies for the last five years have been trimming costs, trimming costs, trimming costs,” says Robert Atkinson, research director at Columbia University’s Institute for Tele-Information.
“It makes you wonder how much fat is left in either organization.”
According to a Seattle Times article,
“SBC’s strategy in previous mergers has been very hands-on. Just months after its deals close, many top executives of the acquired company leave.
AT&T Chairman and Chief Executive David Dorman, then the head of Pacific Telesis, left shortly after SBC took over the California phone company.
Dorman, who will be president of the new SBC, and SBC Chairman and CEO Ed Whitacre Jr. battled publicly over telecommunications issues in recent years. During a news conference yesterday, both said there were no lingering problems.”
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