“Asset-stripping occurs when an owner or investor in a company sells off some of its assets, taking the benefits for itself and hobbling the company. This practice is favored among some private-equity firms that buy companies, load them with debt to finance the purchases and hope to sell them at a profit in a few years to someone else. A common form of asset-stripping is known as a sale/leaseback and involves selling a company’s real estate; this type of transaction hobbled Windstream.”
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Pro tip: Google the new CEO and see what he's (in)famous for to gain a better understanding of what is really real.
Tony will be back after the merger
Return of the KING!!!!
Tony will be back after the merger
Current CEO did what Tony couldn't, which is why TT is out.
The question in my mind is the hedge fund that owns a huge stake of Windstream. You know, that same hedge fund owns a chunk of Frontier as well.
The mergers aren't over kids. This is just the dress rehearsal merger for the real one that's coming.
PS. Layoffs will continue until morale improves.
Not quite, Tony did the sale/leaseback which is called out here and absolutely sc--wed Windstream long term. He sold it to the board as a tax play which it was until it wasn't.
We are actually reversing the poor decision he and the board made at that time. It remains to be seen what is done with the final company. My guess is it continues to look for a buyer.
An amazing thing, if Windstream just focused on being an ILEC providing internet and stopped pursuing growth so hard it could be a solid dividend play. That has never been the goal here because all the leadership wants to make a big buck off a sale.
Current CEO was hired to do just this.