Telecom giant AT&T's board of directors reportedly approved a plan to divide the company into four parts.
The New York Times
reported that AT&T will spin off its cable television and wireless units as separate businesses. AT&T also plans to issue a tracking stock for its flagship consumer long-distance business, which would be run as a separate unit. The company's business division would be its core business. The paper, citing people close to the company, said AT&T would likely make an announcement about the changes tomorrow.
Surprised to hear this from the company that in 1984 was forced by the government to split into smaller parts to break up its monopoly hold on the telecom industry? You shouldn't be. AT&T has been sagging under, among other things, its large debt load and continuing weakness in the consumer long-distance market.
earlier this month wrote a
separate story on why AT&T has been looking to spin off its new economy business. And
complete story on the restructuring.