Ex-AT&T; Executive to Head Global Crossing Web Unit
Telecommunications upstart Global Crossing said Monday it has hired former AT&T; executive Leo J. Hindery Jr. to run its GlobalCenter Internet services operation.
As chairman and chief executive of Sunnyvale-based GlobalCenter unit, Hindery, 52, will lead the expansion of one of the world’s largest hosts of Web sites and other behind-the-scenes services that make e-commerce possible. GlobalCenter’s customers include Yahoo, EToys, Motley Fool and more than 300 other Internet brands, and the unit brings in about $200 million in annual revenue.
The job will mean a change of focus for Hindery, who served for seven tumultuous months as head of AT&T; Broadband & Internet Services before leaving in October; AT&T;’s business unit was responsible for the phone giant’s foray into the cable business. Before that, Hindery was president and chief executive of Tele-Communications Inc., which AT&T; bought earlier this year for $44 billion.
Analysts said the job of managing the phone-based networks that comprise GlobalCenter is similar to running the cable networks of TCI.
“He brings a lot of skill sets in running communications networks,” said Jeffrey Kagan, a telecommunications analyst in Marietta, Ga.
Global Crossing, based in Hamilton, Bermuda, began by operating undersea phone cables and expanded into the consumer market with its $10.7-billion acquisition of phone company Frontier this year.
Hindery’s cable background could also be helpful if the rapidly expanding Global Crossing--which inherited GlobalCenter this year as part of its Frontier deal--adds entertainment services to its portfolio.
“Whether that comes over cable lines or whether it comes over the phone line or as interactive television, Global Crossing will need to be able to provide entertainment services,” Kagan said. Hindery said Global Crossing, which has executive offices in Beverly Hills, doesn’t have plans to deliver entertainment.
Hindery, who is close to Global Crossing Chief Executive Robert Annunziata, said the new job appealed to him because there is a chance the unit will be spun off.
Sources say Hindery was weighing other options, including becoming a partner at the Forstmann Little & Co. management buyout firm and becoming chief executive of a satellite venture being assembled by telephone mogul Craig McCaw.
Global Crossing’s shares gained $2.38 to close at $47.38 in Nasdaq trading Monday.
*
Times staff writer Sallie Hofmeister contributed to this report.
