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AT&T to sell Yellow Pages business
11 April 2012
Private equity investor to pay $950m for 53% of classified phonebook business, but AT&T retains 47%
Private-equity firm Cerberus Capital Management will acquire a majority stake in AT&T’s Yellow Pages business for $950 million in debt and cash. The deal involves Cerberus offering $200 million notes and $750 million in cash to AT&T, which will retain a 47% stake in the new firm — named YP Holdings.
The deal, which is estimated for completion around mid of 2012, is now awaiting a review by the US Justice Department.
Revenue of the telecommunication firm’s Yellow Pages business dipped 30% in the last two years to reach $3.3 billion in 2011. The wireline unit of AT&T posted 2.5% year-on-year decline in operating revenue to stand at $59.8 billion in 2011 and wireless unit sales jumped 8.1% year-on-year to $63.2 billion. AT&T said that the deal will hardly impact its 2012 earnings.
The Wall Street Journal had reported in March 2012 that TPG, a private-equity firm, was also in discussions with AT&T regarding the purchase of the Yellow Pages business. GTB
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