Summary
1. The “customers and employees” had nothing to do with the “Century” portion of the new name. 2. Despite Embarq being three times CenturyTel’s size with the name of CenturyLink selected, it is pretty clear which company is running the show. 3. It has one more board member than Embarq, and the top administrative jobs all come from the smaller entity.
Analysis
At CenturyLink, all of the positions of power and control are in the hands of CenturyTel. It appears that there would have been no deal had it been the other way around.
There has to be a major cultural shift at Embarq. CenturyTel’s more entrepreneurial spirit will be very beneficial to the IOC.
We believe that CenturyTel is actively looking at doing other acquisitions. While it will
probably not buy anything really soon, the business development unit seems to be gazing out over the horizon.
For more information on this merger as well as others, please see the June issue in our Independent Telco Tactics Monthly, “M&A Activity of IOCs.” The report can be purchased directly from GLG.
