BACK TO BASICS – After less than a year as Crown Castle’s CEO, Steven Moskowitz was sent packing by Crown Castle’s Board of Directors. They gave no reason for the unexpected termination that surprised industry insiders.
Crown Castle Inc. shares slipped almost 4% yesterday following the abrupt termination of CEO Steven Moskowitz earlier this week. He held the top job for less than a year. The decision surprised the industry as the wireless infrastructure giant underwent a major strategic shift, including the $8.5 billion divestiture of its small cells and fiber solutions businesses.
The company did not cite a specific reason for Moskowitz’s termination but emphasized that it was unrelated to financial performance, ethics, or compliance concerns. Instead, the board said the leadership change aligns with its goal to transform Crown Castle into a focused, “pure-play” U.S. tower company.
However, that was Moskowitz’s role when he was at American Tower Corporation where he previously served as EVP and President of the U.S. Tower business, and saw the company triple its site count and quintuple its adjusted EBITDA, and solidified its position as a leader in the U.S. wireless infrastructure sector with the towerco’s single line of business.
Chief Financial Officer Dan Schlanger has been appointed interim CEO while a search for a permanent replacement is underway.
Activist pressure mounts
The leadership shake-up follows two years of mounting pressure from activist Elliott Investment Management, which criticized Crown Castle’s strategy and performance. In December 2023, Elliott won two seats on Crown Castle’s board—installing Jason Genrich and former T-Mobile executive Sunit Patel, a candidate to succeed Schlanger as CFO.
After eleven months into his term, Moskowitz’s tenure ended abruptly. “The Board determined that now is the right time to make this leadership transition to complete the previously announced sale … and transform the company,” said Crown Castle Chairman P. Robert Bartolo in a statement.
Fiber exit and refocused strategy
Earlier this month, Crown Castle agreed to sell its fiber assets to EQT’s Active Core Infrastructure Fund and Zayo Group for $8.5 billion. The deal marks a sharp pivot away from the company’s previous vision of building out fiber and small cell networks to support 5G deployments.
The fiber unit had long been a point of contention with investors. Elliott, a 0.7% stake valued at about $128 million, had openly criticized Crown Castle for allocating capital to fiber infrastructure that underperformed relative to its core tower business.
After leading the company since 2016, Crown Castle’s previous chief executive, Jay Brown, retired in December 2023, less than a month after Elliott Investment Management urged the company to oust him. Anthony J. Melone, who had been serving as Interim President and CEO since January 2024, transitioned to the role of Special Advisor to the President and CEO, effective May 1, 2024, to ensure a smooth handover to Moskowitz. Melone continues to contribute to Crown Castle as a member of its Board.
With the sale and the CEO shake-up, Crown Castle effectively signals a return to basics: focusing exclusively on its bread-and-butter wireless tower portfolio.
