AT&T uncovers hidden costs of media deals

NEW YORK: Companies merge, executives leave – it happens all the time. But HBO Chief Executive Richard Plepler’s resignation from AT&T on Thursday is worth scrutinizing a little more closely. The network he ran is one of the main reasons the telecom firm paid $85 billion for parent Time Warner. People can be replaced, but this just makes an expensive deal even more so.

Plepler is highly respected in the entertainment business. He spent almost 28 years at HBO and helped usher in a wide range of critically acclaimed smash series including “Sex and the City,” “The Sopranos” and mega-hit “Game of Thrones.” That makes him a magnet for talent. Reese Witherspoon and Nicole Kidman cast their lot with HBO.