The AT T Breakup free essay sample

Causes of divestiture effects on firm public. Background, competition, five segments after breakup, merger activity, advertising promotion, economics services. ATT (formerly American Telephone and Telegraph) is the worlds largest telecommunications company providing services, products and systems to consumers, businesses, governments and other telecommunication companies. At one time, AT had the broadest, most advanced communications network in the world, and created Bell Labs, a premier manufacturer of telecommunications equipment. In 1984, AT was forced to divest into separate businesses; the company rebuilt its business to include long distance, computers and manufacturing. In late 1995, the company announced that it would divest into three separate companies along its business unit lines. This research examines the conditions which led to the 1984 breakup, and whether that divestiture benefited the American public.