NEW YORK (TheStreet) - AT&T (T) is selling a majority stake in its Yellow Pages phonebook directory unit to private equity firm Cerberus Capital Management for roughly $950 million, as large telecoms continue to hang up on printed directory businesses.
As part of the deal, Cerberus will pay AT&T $750 million in cash and a $200 million note for a majority 53% stake Yellow Pages that will give it control of a printed phonebook business that reaches roughly 150 million homes and drew in $3.3 billion in 2011 revenue.
|AT&T Dials In Cerberus for Yellow Pages Sale|
AT&T will keep a minority 47% stake in Yellow pages, as it continues to focus on bolstering its service of mobile smartphones like Apple's (AAPL) iPhone. In December, antitrust regulators blocked a $39 billion merger between AT&T and T-Mobile USA, which would have expanded AT&T's wireless network and helped it keep pace with competitor Verizon (VZ).
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