AT&T named John Stankey its next chief executive on Friday, replacing Randall Stephenson, who retires this summer.
Stankey, 57, has worked at the telecommunications company since 1985 and served as chief operating officer since October. He will assume the top job July 1.
Stephenson, 60, will stay on as executive chairman of the board until January to “ensure a smooth leadership transition,” the company said in a statement. Stephenson has run the company for the last 13 years, and Stankey will join the board in June.
The Dallas-based telecommunications giant has been involved in a multi-year succession planning process, but the issue became more pressing last fall when an activist shareholder delivered a letter demanding changes to boost AT&T’s share price.
The activist shareholder took aim at Stephenson, who last year said he planned to stay on through 2020.
AT&T said it has engaged in a extensive five month-search process to identify Stephenson’s replacement.
“Leadership succession is one of the Board’s most important responsibilities,” board member Beth Mooney said in a statement. “After an extensive evaluation, it was clear that John Stankey was the right person to lead AT&T into the future.”
Stankey, a Los Angeles native, has already put his stamp on the company, trying to transition it from a phone company into an entertainment behemoth. Stankey was the architect of AT&T’s ill-fated $49-billion purchase of satellite TV service DirecTV in 2015 and the $85-billion purchase of Time Warner Inc., which was renamed WarnerMedia. He also has led the company’s digital efforts, including its highly anticipated launch of the HBO Max streaming service on May 27.
Stankey served as WarnerMedia’s chief since AT&T acquired the company in June 2018.
While Stankey was at the helm of WarnerMedia, he completely rebuilt the management team. Earlier this month, AT&T appointed Jason Kilar, the architect of Hulu, to lead WarnerMedia beginning May 1.
“I’m honored to be elected the next CEO of AT&T, a company with a rich history and a bright future,” Stankey said in a statement. “My thanks go to Randall for his vision and outstanding leadership during a period of tremendous change and investment in the core capabilities needed to position AT&T well for the years ahead. And I appreciate the Board’s confidence in me leading the company during our next chapter of growth and innovation in keeping people connected, informed and entertained.”
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