How AT&T directors decided its was time for change at the top; Hughes' Armstrong is CEO and Zeglis is President; Allen is very lame duck: losing the faith of a friend
Article Abstract:
AT&T directors may announce the appointment of new leader C. Michael Armstrong, as soon as today. Armstrong, the Chmn and CEO of Hughes Electronics, would succeed Robert E. Allen as AT&T chmn and CEO. Allen, in a surprise development, will resign within weeks after a 40-year career with the telecommunications giant. Allen's choice for replacement, Vice Chmn John D. Zeglis, is being promoted to Pres and COO. Board members are tacitly promising Zeglis that he will succeed Armstrong as chmn and CEO by 2000. AT&T has been struggling amid unprecedented industry upheaval. The AT&T board has drawn criticism for its inertia while Allen experienced mixed results during his tenure. Armstrong represents the first outsider to lead AT&T since 1900. Among the AT&T moves Armstrong must consider are whether to enter the $30 billion takeover competition for MCI. AT&T could attempt to purchase one of the MCI suitors, WorldCom or GTE. Another scenario could consist of coupling with a Baby Bell such as SBC Communications.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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Barksdale, head of wireless at AT&T, quits to join Internet start-Up Netscape
Article Abstract:
James L. Barksdale resigns as head of wireless services at AT&T and joins the rapidly growing Netscape Communications Corp as Chief Operating Officer (COO). Barksdale was president of McCaw Cellular Communications Inc when it was acquired by AT&T, and will now have an opportunity to manage a company that provides navigational software for users of the Internet. Industry insiders opine that Barksdale, who made $20 million from his McCaw Cellular holdings, also stands to make a fortune in equity compensation if the growth of Netscape continues at its present rate. Netscape has recently signed licensing agreements with several major clients, including BankAmerica Corp, MCI, and Mastercard International Inc.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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