AT&T Inc. is in talks to sell a majority stake in its Yellow Pages unit to Cerberus Capital Management LP in a transaction that values the entire business at about $1.5 billion, said two people familiar with the matter.
AT&T Inc. agreed to sell a majority stake in its Yellow Pages directory division to Cerberus Capital Management LP for about $950 million as part of an effort to dispose of units that are holding back revenue growth.
Michelle DiFeo, owner of DiFeo Glass & Mirror, bought her first yellow pages ad in 2004, the same year Google Inc. went public. While online search has exploded since then, DiFeo still takes out color ads in two phone books that cover New York’s Westchester County. Although she won’t disclose what she pays for the ads, she says they’re worth the investment. For her customers, using a paper directory is “a force of habit,” DiFeo says,
Kohlberg Kravis Roberts & Co, Texas Pacific Group, The Carlyle Group, Pacific Equity Partners and CVC Capital Partners may bid for Yellow Pages Group Ltd. of New Zealand, the Australian Financial Review reported in its Street Talk column, without saying where it got the information. The company may be sold for five times earnings before interest, tax, depreciation and amortization, which has dropped to about NZ$130 million, the newspaper said.
Verizon Communications Inc. was sued this week by the creditors’ representative of former unit Idearc Inc. in a complaint alleging that the 2006 spinoff was a fraudulent transfer designed to generate $9.5 billion for the second-largest phone company in the U.S.