logo
Share SHARE
FONT-SIZE Plus   Neg

AT&T To Sell Yellow Pages Unit To Cerberus; To Take Stake In New Entity

Telecom giant AT&T Inc. (T) on Monday said it agreed to sell Advertising Solutions and Interactive business units, including Yellow Pages, to private equity firm Cerberus Capital Management, L.P. AT&T will receive about $750 million in cash as well as a $200 million note. AT&T will hold a 47-percent equity interest in the new entity YP Holdings LLC.

The transaction is subject to Hart Scott Rodino notification with the U.S. Department of Justice and is expected to close in mid-year 2012. The company expects a minimal effect on 2012 earnings from the deal and does not expect to record a material gain or loss.

The sale includes assets of advertising solutions unit, which delivers sales and customer support, and interactive unit, which conducts interactive product development.

The company noted that the new YP will include about 1,200 The Real Yellow Pages print directory titles, YP.com, the YPSM Local Ad Network that includes more than 300 mobile and online publisher websites, along with the YPmobile app, which allows users to search local businesses from their mobile devices. These units generated approximately $3.3 billion in revenues in 2011.

AT&T added that YP has agreed to honor existing union contracts.

However, the deal excludes the recently formed AT&T AdWorks, a New York-based operation that sells advertising offerings across 3-screen platforms such as online, mobile and TV.

Commenting on the deal, José Gutiérrez, president and CEO of AT&T Advertising Solutions, said, "It enables AT&T to focus on its core strategy of leadership in wireless, IP, cloud- and application-based services."

AT&T shares are currently trading at $30.74, down $0.20 or 0.65 percent.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Federal Network Agency (Bundesnetzagentur) has asked parents who bought the popular My Friend Cayla doll to destroy the toy or disable its wireless connection. The Bundesnetzagentur has banned the unauthorized wireless transmitting equipment in a children's toy and has already removed the product... Saudi Arabia is reportedly considering to list its state-run oil behemoth Saudi Aramco in New York Stock Exchange. According to a WSJ report, citing people familiar with the matter, Aramco prefers to float its shares on the NYSE, or in London or Toronto after discussion to list on an Asian stock exchange... Anglo-Australian mining giant BHP Billiton plc reported Tuesday a profit in its first half, compared to last year's hefty loss on sharply lower one charges. Underlying EBITDA, a key earnings metric, climbed 65 percent with higher production and prices. The company further lifted its dividend by 150 percent.
comments powered by Disqus
Follow RTT