NOTE: The original post did not include specific financial information related to Avaya as it requires more research time to gather and publish. I also will have to gather Nortel information to put together for an analysis. The original post features the overall history of Avaya from spinoff to bankruptcy.
I wanted to quote the once pop song Breathe (2 AM) from artist Anna Nalick of “unravelling my latest mistake” however Avaya unravelled one too many mistakes instead.
In preparation for this post; I went to the basement in my house, the office where I have a file cabinet of old periodicals. I have a collection of annual financial reports from AT&T to every known spinoff because I have a living grandmother who got shares of AT&T around 1988 when my nana (great grandmother) passed. AT&T was known to be the widow stock because of it’s dividends, but when my great grandmother passed, I was a year old; and four years after Divesture. Even before 1984, AT&T’s stock was under pressure, even as a regulated monopoly.
So my gram owned AT&T, NCR, Lucent, Avaya, Agere, and a couple of others. I believe the Avaya buyout of 2007 was her last dump of all the individual stocks that no one would envision twenty years prior would occur. (In fact, there was a surprise for me, my family was in talks of transferring the ownership of AV from my gram to me. But it all went away when they were bought out by the PE firms.)
I feel the Avaya spinoff in retrospect after the bankruptcy was a blessing in disguise – when you look at the numbers. In 2007 around the time of the buyout, Avaya’s stock was around $10 a share. Nortel was in the pennies (even after a reversed split), Lucent merged with Alcatel (the word on Main Street was the merger would raise the stock price) and it went nowhere; Agere was bought out in 2007 as well.