AT&T (T) Confirms Sale of Advertising Solutions, Interactive Business Segments

AT&T (NYSE: 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. For the business units, AT&T will receive approximately $750 million in cash, subject to adjustment primarily related to timing of closing, a $200 million note and a 47-percent equity interest in 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 YPSM 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.

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).

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.

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