In a deal worth US$950 million, United States telecom giant AT&T will sell a 53 percent stake in its Yellow Pages business to private equity firm Cerberus Capital Management.
The division generated about US$3.3 billion revenue for the company last year. AT&T Advertising Solutions and AT&T Interactive, the formal name for the division, produced 1,200 The Real Yellow Pages directories reaching 150 million homes and businesses in 22 states in 2011. Once the transaction is complete, it will operate as a new entity, YP Holdings LLC.
“This transaction makes strategic sense for both AT&T and Advertising Solutions,” said José Gutiérrez, President and CEO of AT&T Advertising Solutions. “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.”
AT&T recently formed AT&T AdWorks, which is aimed at screen-based advertising platforms such as online, mobile and television.
“YP will continue to deliver the industry-leading service and products our customers and partners expect from us,” said David Krantz, President and CEO of AT&T Interactive. “And everyone will work hard to make the transition seamless for the millions of consumers and thousands of advertisers, developers, publishers and resellers using our services.”