No real surprise as they are going to be cutting off more in 2019.
https://finance.yahoo.com/news/windstream-sells-earthlink-consumer-internet-210100981.html
9 replies (most recent on top)
It was bad decision to buy EarthLink period.
"Is this a good move? Without the negativity. Some say the fiber sale was good the other day even on here."
Wall Street seems to like it so far - this is something they should have done last year - cut out all the fat and run a lean company. If the clueless executive teams sells off more useless assets, there is a chance the stock can get better.
They will probably also look to jettison many of the landline areas in small groups to more local telcos - gone are the days when they can sell the off to Frontier or anyone similar.
Windstream will use this capital to buy another CLEC resale company based out of New York comprised of former paetec/Windstream/EarthLink people with a customer base of former disgruntled Windstream clients that will immediately terminate their contracts and we will never see one penny ROI. They call it 'small ball acquisition', but really it's 'chin ball acquisition' as we just get teabagged. But don't worry I am sure we will get a few VPs out of it there talent is so needed.......
"Question is does the leadership make the right moves with that money?"
Yes. It will first go for the executive bonuses and vacations, and probably they will go on another buying spree....
It was a profitable business but relatively small and with decreasing revenue. WIN got a good amount for what it is. Question is does the leadership make the right moves with that money?
Sounds like it wasn’t needed or an asset anymore but a liability.
Windstream at some point in the relatively near future needs to make some changes or they won’t have assets to sell to firm up their balance sheet. We’re due a purchase. Haven’t bought a company in awhile.
"How exactly does this affect our company?'
This article sums it up.
https://www.bloomberg.com/news/articles/2018-12-31/windstream-sells-earthlink-consumer-web-unit-to-trive-capital
How exactly does this affect our company?
Is this a good move? Without the negativity. Some say the fiber sale was good the other day even on here.