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 SM 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 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.”The transaction includes assets of AT&T Advertising Solutions, which delivers sales and customer support, and AT&T Interactive, which conducts interactive product development. It does not include the recently formed AT&T AdWorks, a New York-based operation that sells advertising offerings across 3-screen platforms (online, mobile and TV). “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.”