Reminds me of the effort AT&T made with NCR: In 1991, AT&T acquired the firm through a hostile takeover, buying NCR for $7.5 billion.
In December 1990, AT&T executive Robert Kavner justified his firm’s costly plan to buy NCR by saying that combining the two firms would create a powerhouse.
But instead of synergy, the deal produced a sinkhole.
NCR’s losses at one point reached $2 million per day, and now, a company that cost AT&T more than $7 billion to buy has a market capitalization of just $3.5 billion. (CNN Money, 1997)
During the late 20th century, AT&T expanded into various technology sectors beyond telecommunications, including computers and office equipment. For example, in the 1980s, AT&T ventured into personal computers and typewriters.
AT&T announced on Wednesday, December 21, 1983, the purchase of 100 million shares of Olivetti for $4.26 million.
Huge mistake! Huge!!
I worked for AT&T prior to, during, and after this time. I purchased two of those typewriters and sent them both back. Pieces of CRAP!
AT&T was a once great company. A great TELECOMMUNICATIONS company. I enjoyed the early years of my career there. Toward the end, a retirement deal saved my sanity.
