Business Movers

Breaking Bell | The Deal | 4

16 snips
Jul 17, 2025
AT&T is facing a major antitrust lawsuit that could force a corporate breakup. Executives propose a radical Inter-Intra Split to navigate legal challenges. As they juggle negotiations with the Department of Justice, they explore new opportunities in computing. The tension escalates as political shifts threaten their position, leading to intense courtroom battles. Ultimately, the decision to split marks a pivotal shift in the telecommunications landscape, intertwining corporate strategy with historical insights on educational engagement.
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ANECDOTE

AT&T's Secret "Inter-Intra Split" Plan

  • AT&T executives secretly planned a complete split of their regional operating companies from their long-distance network.
  • This "inter-intra split" was a last-resort plan to save the company amid rising antitrust pressure.
INSIGHT

AT&T's Strategic Trade-off

  • AT&T planned to give up regional subsidiaries but keep key assets like Bell Labs to maintain growth.
  • They aimed to exchange local phone control for entry into the emerging computer industry.
ANECDOTE

Key Negotiation Between AT&T and DOJ

  • Howard Treanins and William Baxter met in Washington to negotiate a new settlement.
  • AT&T offered to divest all regional companies if they could keep long-distance, Bell Labs, and enter the computer market.
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