AT&T is selling Yellow Pages for $1.2 billion

AT&T is selling Yellow Pages for $1.2 billion
AT&T is selling one of its best known businesses, Yellow Pages, in a $1.2 billion deal. The carrier explains that it wants to focus on its core strategy including wireless, the cloud and Internet.

AT&T is selling Yellow Pages to private equity firm Cerberus for $750 million in cash, a $200 million note and a 47% ownership stake in the newly found YP Holdings LLC.

The deal spans over 1,200 Real Yellow Pages print directory publications that end up in nearly 150 million US homes and businesses. It also covers online ad network YP.com and the mobile system to go along with it, YPmobile.

'It enables AT&T to focus on its core strategy of leadership in wireless, IP, cloud- and application-based services. At the same time, it gives our advertising customers, partners and developers continued access to strong advertising and search innovation and performance.'

The Yellow Pages deal should close in the middle of the year. Overall, the carrier expects the deal to have little effect on its 2012 earnings.

source: WSJ

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4 Comments

1. -box-

Posts: 3991; Member since: Jan 04, 2012

So they sold it to the same company that almost killed Chrysler Corp. Awesome. Granted the internet pretty much supercedes the yellow pages (except for power outages) so it's not at all surprising, but it's interesting what company bought the division

2. ECPirate37

Posts: 282; Member since: Jul 14, 2011

Someone overpaid. I was just talking last night how I believe this is a dying publication. I guess at&t agreed and got out while the getting was good. I hate at&t, but this was smart on their part.

3. PAPINYC

Posts: 2315; Member since: Jul 30, 2011

Why buy the Yellow Pages when you can Google it and I'm sure if you search Youtube you'll find a video showing you where to find the address and number you're looking for [dangle preposition]… I let Google 'do the walking'.

4. jmoita2

Posts: 930; Member since: Dec 23, 2011

Just like the movie rental store and film developing kiosk so goes the Yellow Pages; Completely surpassed and redundant. An idea whose time has come...and gone.

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