What Will AT&T Do Without Ed Whitacre?

AT&T (T) just doesn't seem the same without Ed Whitacre at the helm.

Ed Whitacre was the CEO of Southwestern Bell Corporation/ SBC Communications, "the new AT&T", from 1995 to June 2007. He orchestrated a string of acquisitions that turned the smallest baby bell into the largest telecommunications company in the world. By the end of his tenure, AT&T was the largest US provider of local and long distance telephone service, the largest US provider of broadband internet access, the largest US wireless provider based on subscribers, the largest US directory publisher, and one of the largest providers of IP based telecom services for businesses. In addition, AT&T has one of the world's most powerful internet backbone networks, a leading internet directory service, and emerging businesses in television. AT&T was most recently named the Company of the Year by Forbes magazine.

Over the past few years, Ed Whitacre kept things interesting for shareholders. From the bidding war for AT&T wireless, to the acquisition of the remnants of the old AT&T and subsequent rebranding and renaming of the company, to the eventual Bellsouth merger that squeaked through antitrust authorities.

He kept things controversial and unusual. From his push to bring TV service to telecom customers, to statements about requiring internet companies pay for broadband pipe access which sparked a debate about network neutrality, to his $158.5 million dollar retirement package.

He was interesting, intriguing, and uncharacteristic of a telecom executive. He supposedly did not have a computer in his office or use email. He enjoyed ranch life and one of his favorite activities was using his tractor to move things and dig holes.

His replacement Randall Stephenson is in the unfortunate position of following an icon. Since he took over in June, AT&T's stock price has been basically flat, even through the much anticipated iPhone launch. He hasn't made any splashy statements or deals and probably won't any time soon. He has stated that AT&T will not make any more acquisitions for "the time being." He is supposedly tech savvy and loquacious.

Yawn.

I miss Ed Whitacre.

Disclosure: Author has a long position in T

T 1-yr chart

Comments

[Mark:]

I couldn't agree more on your article. Randall Stephenson does not have near the leadership skills nor the charisma to lead this huge company as Ed did. Employee morale is down and they lack the nimbleness and flexibility to compete. Without the big dividend payout I would exist the stock as a yawner too..

2007 Aug 27 11:34 AM