AT&T Inc. (T: Quote) said that an affiliate of Cerberus Capital Management, L.P. has agreed to acquire AT&T Advertising Solutions and AT&T Interactive.
As part of the deal, AT&T will receive a 47-percent equity interest in the new entity, YP Holdings LLC. YP will include around 1,200 The Real Yellow Pages print directory titles reaching about 150 million homes and businesses in 22 states, YP.com, the YPSM Local Ad Network and the YPmobile app.
For the business units, AT&T will receive approximately $750 million in cash, subject to adjustment primarily related to timing of closing, a $200 million note and a 47-percent equity interest in YP. AT&T expects a minimal effect on 2012 earnings from the transaction and does not expect to record a material gain or loss on the transaction.
The deal includes assets of AT&T Advertising Solutions, which delivers sales and customer support, and AT&T Interactive, which conducts interactive product development. It does not include the recently formed AT&T AdWorks, a New York-based operation that sells advertising offerings across 3-screen platforms.
The deal is anticipated to close in mid-year 2012.
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by RTT Staff Writer
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