The AT&T media disaster follows the Verizon one. It was totally predictable. Professionally I spent almost 10 years in an around the Bell System. New York Telephone, Bell Labs, and NYNEX. I also spent a few years at Warner. The difference in culture is galactic. Warner was a nest of massive creativity. It was fun, it allowed for testing new areas and exploring them, if it worked great if not then on to the next one. The Bell System was a rigid hierarchy, no fun, unless you liked golf. Your office furniture dictated your position in the company. Only Officers had their own personal bathrooms.
The Bell System folks are good at climbing poles, managing battery back ups, installing switches. Every time they try something new, well, just don't even think about it.
As the NY Times reports:
AT&T is painting a rosy picture for the future of its media business, which it will spin off and merge with Discovery. That new streaming giant is a formidable stand-alone competitor to Netflix and Disney. The move leaves AT&T to focus on its telecom business, which looks less bright after being overshadowed by its expensive — and ultimately futile — deal-making binge in media and entertainment under its previous chief, Randall Stephenson.
The grass seemed greener on the other side. I remember my first few weeks back at NYNEX and trying to explain that Profit is Revenue less Expenses, not Return on Assets. The telecom business is drastically different than media. The people are different, arguably even genetically. No one ever accused the Bell System of being creative, think black rotary dial phones. If there had been no break-up we may have seen them return! The Internet was shoved down their throats! I remember some twenty plus years ago say IP would replace SS-7. Well it has but only after some kicking and screaming.
Now if AT&T like apparently Verizon can focus on what they do best they may have a shot. If the top management keeps wanting to waste shareholder money on self aggrandizing acquisitions, not so much.
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