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Crown Castle has come under fire on two separate fronts: activist investor Elliott Management and Crown Castle co-founder Ted Miller
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The company insists that under Steve Moskowitz’s leadership, it will be able to drive enhanced value for shareholders
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Moskowitz most recently served as CEO of Centennial Towers
Crown Castle’s new president and CEO is none other than Steven J. Moskowitz, a long-time tower industry veteran who helped establish American Tower’s U.S. business.
The appointment comes at a pivotal time for Crown Castle [NYSE: CCI]. It’s in the middle of a proxy fight with co-founder Ted Miller and undergoing a strategic review at the urging of hedge fund Elliott Management.
The selection of Moskowitz, 60, also is notable because Miller has complained that there’s not enough tower industry experience at the helm. He and his co-investors own a stake worth more than $100 million in the company and say that with their plan, they can take Crown Castle shares to $150-$160. Its shares currently trade around $97.
Spotlight on experience
Moskowitz most recently served as CEO of Centennial Towers Holding, a provider of build-to-suit cell sites in Brazil, Colombia and Mexico. Prior to that, he was CEO of NextG Networks, a fiber-based cell site solutions provider. Crown Castle acquired NextG Networks in 2012.
Before all of this, Moskowitz held several executive leadership roles during his 12 years at American Tower, including seven years as EVP and president of the U.S. tower business.
While he was at American Tower, its U.S. operations became the largest and most profitable U.S. wireless infrastructure company, tripling in size to more than 20,000 cell sites and expanding the indoor DAS network division, growing adjusted EBITDA approximately 5x, representing more than 85% of the corporation’s profitability – according to the press release announcing his appointment.
“I believe the opportunities are significant for Crown Castle, and I look forward to working alongside the board and leadership team to continue to strengthen the company’s operations and unlock value for shareholders,” Moskowitz said in a statement.
A company spokesperson told Fierce that Moskowitz was not available for an interview. (Hey, we get it – he's got a lot going on. Worth a shot though.)
Until Crown hired Moskowitz, former Verizon CTO Tony Melone served as interim president and CEO. He will assume the role of special advisor to the president/CEO until May 31 and will remain a Crown Castle board member.
Fight continues
Crown Castle’s Board of Directors made a point today to let shareholders know that they’re doing all they can to create a stronger and more valuable company. A review is underway of the fiber and small cell business, and it’s strengthened its board with people who have relevant experience, including Bradley Singer, another former American Tower exec.
But they’re still fighting Miller and his Boots Capital Management firm. Under his plan, Miller would return as executive chairman – he previously told Fierce that he does not want to be CEO – and he would bring three of his partners to the board, besides himself. The others are Charles Green III, David Wheeler and Miller’s son-in-law Tripp Rice.
Crown says it’s already engaged extensively with Miller and his Boots group over the last five months to better understand his views and discuss his proposals, but apparently, Crown Castle’s current leadership doesn’t think he has anything more to add.
"During his 22-year absence from Crown Castle, Mr. Miller has neither been involved with the management of any other major industry participant nor has he gained industry-related experience that would be relevant for the company’s opportunities and risks today,” Crown Castle stated. “Mr. Miller has not presented any actionable new ideas that the company has not already considered or is not currently evaluating.”
Indeed, Miller released a statement today saying his team is reviewing Moskowitz’s qualifications to serve as Crown Castle’s CEO, but they believe the hiring of Moskowitz only reinforces the need for Boots Capital’s nominees to join the Crown Castle board.
Clearly, it's not as “Hollywood” as Bob Iger/Disney versus Nelson Peltz, but it’s shaping up to be one for the (tower) ages.