AT&T activist investor Elliott Management says the DirecTV acquisition has had 'damaging results' as it came 'at the absolute peak of the linear TV market'
Elliott Management says four strategies can help push the stock higher and argues the takeover of DirecTV has had"damaging results" as it came"at the absolute peak of the linear TV market."
According to the letter, Elliott made the investment in AT&T – among its largest ever – because it exhibits a unique combination of historical underperformance, a depressed valuation, well positioned assets and a clear path forward to generate extraordinary value for shareholders and"Over the past decade, AT&T’s shareholder returns have underperformed the S&P 500 by well over 100 percentage points," the investor noted.
In the letter, Elliott argued that "AT&T has been an outlier in terms of its M&A strategy," saying: "Most companies today no longer seek to assemble conglomerates. This approach is more characteristic of a prior era, calling to mind the conglomerate boom of the 1960s or the Mike Armstrong years at the 'old' AT&T.
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