AT&T has agreed to sell its print and online directories business to private equity group Cerberus Capital Management. AT&T will receive USD 750 million cash, a USD 200 million note and a 47-percent equity interest in the new company YP Holdings. The AT&T Advertising Solutions and AT&T Interactive units included in the sale include 1,200 Yellow Pages print directories, the website YP.com and its associated local ad network for internet and mobile advertising, and the YPmobile app for searching local business directories. The businesses generated USD 3.3 billion in revenues in 2011. The acquisition excludes the recently formed unit AT&T AdWorks, a New York-based operation that sells advertising offerings across online, mobile and TV screens. Among other agreements, YP has agreed to honor existing union contracts at the acquired activities. AT&T expects the transaction to close by mid-year, pending regulatory approval, and to have a minimal effect on 2012 earnings.
