AT&T to sell Yellow Pages unit in $950 mn deal

US telecom giant AT&T said on Monday it was selling its Yellow Pages unit called YP Holdings LLC to the equity firm Cerberus in a deal worth $950 million. The deal includes some 1,200 Real Yellow Pages print directory titles reaching about 150 million US homes and businesses, as well as the online ad network YP.com and mobile system YPmobile. \"This transaction makes strategic sense for both AT&T and Advertising Solutions,\" said Jose Gutierrez, president and chief executive of AT&T Advertising Solutions. \"It enables AT&T to focus on its core strategy of leadership in wireless, IP, cloud- and application-based services. At the same time, it gives our advertising customers, partners and developers continued access to strong advertising and search innovation and performance.\" AT&T will get $750 million in cash, subject to adjustment, a $200 million note and a 47-percent equity interest in YP, the company said in a statement. The business units generated roughly $3.3 billion in revenues in 2011. Among other agreements, YP has agreed to honor existing union contracts, AT&T said. The deal does not include the recently formed AT&T AdWorks, a New York-based operation that sells advertising offerings across online, mobile and TV systems. AT&T was built on the remains of the old Bell Telephone system that had a near monopoly in the United States until a 1980s breakup, but the new AT&T is heavily involved in wireless and broadband services including television.