CEO Leaving Nextel
By Sharon Henry and Sarah Schafer
Washington Post Staff Writers
Thursday, July 15, 1999; Page E1
Daniel Akerson, the aggressive chief executive who led Nextel
Communications Inc. from near-bankruptcy to become a powerful force in
the cellular industry, is stepping down from the company's top post.
The news came as Reston-based Nextel reported one of its strongest
financial quarters ever, although the company is still not profitable.
Nextel President Timothy Donahue will replace Akerson, who will become
co-chair of Eagle River Investments LLC on Aug. 1. Akerson will share
that job with cellular pioneer Craig McCaw, who formed the company in
1994 to invest in telecommunications companies. Eagle River holds
McCaw's interests in Nextel, Nextlink and Teledesic.
Akerson will continue to serve as chairman of Nextel until Jan. 1. He said
he will remain active in Nextel's operations but had accomplished most of
the goals he set upon his arrival almost four years ago.
Since Akerson's arrival, Nextel has focused on business customers and has
led the industry with offerings such as not charging roaming fees, and
one-second rounding of call time. Last month it introduced an Internet-ready
phone, ahead of its telecommunications rivals.
"I think I'm more of a builder than a manager," Akerson said yesterday in a
telephone interview. Akerson, a former MCI president, said his decision to
leave was partly personal, partly professional, and that in addition to being
co-chair at Eagle River he would be a significant investor.
In May, talks involving a possible merger of Nextel with MCI WorldCom
fell through after the two sides failed to agree on a price. Some people have
speculated that Akerson had been disappointed in that failure, but he said
the failed talks had nothing to do with his decision to move on.
Later that month, Microsoft Corp. surprised the industry by announcing its
plans to buy a 4.25 percent stake in Nextel, a deal that made Microsoft the
Web portal, or gateway, for Nextel's Internet phone users. Some local
telecommunications executives are also surprised that McCaw has tapped
Akerson to join him at Eagle. "Craig and Dan have had some conflict over
Dan's management style in the past," said one executive who spoke on the
condition of anonymity. "He's been somewhat concerned with the way Dan
treats people." However, the executive, who is familiar with the situation,
said, "Craig believes Dan can make him lots of money."
"We're highly confident in Tim's ability to be a very effective CEO.... He
and Dan have been a powerful combination for Nextel but there comes a
time when a guy is ready to take the reigns," said Bob Ratliffe, spokesman
for Eagle River and a longtime associate of McCaw's.
Ratliffe said McCaw has no negative feelings toward Akerson, who has
admitted in the past that he can be intense and that the people who bother
him most are those who want to be loved.
"Do Dan and Craig have the same management style? No, they don't,"
Ratliffe said. "Dan's tough and strong," he said, noting that McCaw is
"softspoken, kind – not to say that Dan's not kind."
Donahue is known for a more gregarious, open-door style of management.
Yesterday Nextel reported a second-quarter net loss of $267.7 million
compared with $358.7 million a year ago. Revenue increased 88 percent to
$793.1 million. The company also announced a 76 percent increase in
domestic subscribers compared with the same period a year ago.
Staff writer John Schwartz contributed to this report.
© 1999 The Washington Post Company
washingtonpost.com |
