TSC Staff
Verizon(VZ Quote - Cramer on VZ - Stock Picks) is weighing the divestiture of its massive phone-book operations as a way to "focus on three core network-based businesses in the wireless, broadband and enterprise markets."
A sale or spinoff is being explored, the company said in a statement. Some estimates say the publishing unit could fetch $17 billion. The subsidiary, Verizon Information Services, publishes about 1,750 directory titles in 44 states and Washington, including almost 1,200 Verizon directory titles with a circulation of about 121 million copies. VIS had operating revenue of $3.6 billion last year and employs 7,300, the company said. "Given the attractive opportunities developing in the local search and advertising markets for VIS, we believe a divestiture would provide VIS with more flexibility to maneuver in the fast-changing environment of content providers," Verizon said. "VIS could then more easily seek partnerships, meet customer requirements and create its own growth opportunities." The company "anticipates that it could complete a disposition in 2006" and hired Bear Stearns and J.P. Morgan as financial advisers.
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