Telecom Lead America: American telecom major AT&T is
set to receive 47 percent equity stake in YP Holdings that will have 200 The
Real Yellow Pages print directory titles reaching about 150 million homes and
businesses in 22 states.
As part of the transaction, an affiliate of Cerberus
Capital Management will buy AT&T Advertising Solutions and AT&T
Interactive.
YP.com is a top 40 website. Moreover, the YP Local Ad
Network includes 300 mobile and online publisher websites providing digital
reach to 71 million monthly unique visitors.
Besides 47 percent stake, AT&T will receive $750
million in cash and a $200 million note for the business units.
The strategic decision enables AT&T to focus on its
core business such as wireless, IP, cloud- and application-based services. It
gives AT&T’s advertising customers, partners and developers continued
access to strong advertising and search innovation and performance.
The business units generated $3.3 billion in revenues in
2011.
This transaction makes strategic sense for both AT&T
and Advertising Solutions,” said Jose Gutierrez, president and CEO of AT&T
Advertising Solutions.
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.
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 government solutions bags $476 million Omnibus network
enterprise contract
AT&T Government Solutions has received an Omnibus
Network Enterprise (ONE) contract from the United States Government (USG).
The ONE contract is a multiple award, Indefinite Delivery
– Indefinite Quantity (IDIQ) contract with a value of $476
million over the next five years.
editor@telecomlead.com
