AT&T reorganization reportedly will include two large units, one focused on media and the other on networks
AT&T is planning a major reorganization of its operating structure in anticipation of the completion of its $85.4 billion merger with Time Warner, according to published reports.
Bloomberg reported that according to anonymous sources familiar with the matter, AT&T plans to operate with two large units: one focused on its entertainment and media businesses, to be led by company veteran John Stankey ( currently CEO of AT&T Entertainment Group, which includes DirecTV); and the other focused on the company’s networks, to be led by John Donovan, currently chief strategy officer and head of AT&T’s network technology and operations. DirecTV would operate as part of the network unit, rather than the media arm, “in order to address questions about whether it can provide competitors fair access,” Bloomberg reported. AT&T CEO Randall Stephenson would still serve as the combined company’s top executive — although Bloomberg initially reported that Stephenson might give up the CEO title, which Stephenson denied in an email to CNBC. CNBC said that other sources confirmed the overall leadership structure for the AT&T reorganization, however.
As part of the AT&T reorganization, the company will shift its the operations of its network group to its Dallas headquarters rather than Atlanta, Ga., including the relocation of some executives — including AT&T Mobility President and CEO Glenn Lurie, according to Bloomberg. Meanwhile, Stankey will operate out of California, with Time Warner continuing its operations in New York and Los Angeles.
Bloomberg said that “AT&T sees the split structure as a way to protect Time Warner’s Hollywood culture, where creativity is prized, from the more bureaucratic traditions of a Dallas office that teems with the jargon of Six Sigma process improvement tools and ‘best practices.'”
RCR Wireless News has reached out to AT&T for comment and will update this story accordingly.
The merger is still working its way through regulatory approvals; the European Commission approved the deal in March. AT&T has said that it expects the transaction to close by the end of this year. Some Senate Democrats recently called upon the Justice Department to block the deal, citing concerns about the combined company’s anticipated “unmatched control of popular content and the distribution of that content” leading to less competition and higher prices.
AT&T outlines plans for video platform launch this fall
AT&T has also outlined plans to launch a new video service platform starting this fall, starting with its DirecTV Now and DirecTV application users. The platform “will eventually provide a consistent look and feel across AT&T consumer video services throughout the United States,” according to AT&T.
Beta testing starts with summer with invited users for the service, which includes a cloud-based DVR service and will eventually also include live TV pausing and parental controls. AT&T said that user profiles, 4K video and the ability to “download and go” will be available in 2018 and that “customers of other AT&T video services will have the opportunity to start using the new platform in the coming years.”
