AT&T to Sell Advertising Solutions and Interactive Business Units to Cerberus
AT&T* announced today that an affiliate of Cerberus Capital Management, L.P. (Cerberus) has agreed to acquire AT&T Advertising Solutions and AT&T Interactive. As part of the transaction, AT&T will receive a 47-percent equity interest in the new entity, YP Holdings LLC (YP).
YP will include:
- Approximately 1,200 The Real Yellow Pages® print directory titles reaching about 150 million homes and businesses in 22 states;
- YP.com, a top 40 website according to a leading global digital measurement firm;
- The YP℠ Local Ad Network, which includes more than 300 mobile and online publisher websites nationwide providing digital reach to more than 71 million monthly unique visitors; and
- The YPmobile® app, which allows users to search local businesses from their mobile devices.
The business units generated approximately $3.3 billion in revenues in 2011. Among other agreements, YP has agreed to honor existing union contracts.
“This transaction makes strategic sense for both AT&T and Advertising Solutions,” said Jose Gutierrez, 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.”
“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.”
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. For the business units, AT&T will receive approximately $750 million in cash, subject to adjustment primarily related to timing of closing, a $200 million note and a 47-percent equity interest in YP. AT&T expects a minimal effect on 2012 earnings from the transaction and does not expect to record a material gain or loss on the transaction.
*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.
AT&T Inc. (NYSE:T) is a premier communications holding company and one of the most honored companies in the world. Its subsidiaries and affiliates – AT&T operating companies – are the providers of AT&T services in the United States and around the world. With a powerful array of network resources that includes the nation’s fastest mobile broadband network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet, voice and cloud-based services. A leader in mobile broadband and emerging 4G capabilities, AT&T also offers the best wireless coverage worldwide of any U.S. carrier, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verse® and AT&T | DIRECTV brands. The company’s suite of IP-based business communications services is one of the most advanced in the world. In domestic markets, AT&T Advertising Solutions and AT&T Interactive are known for their leadership in local search and advertising.
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