Yellow Pages Owner Will Split Print and Digital Operations

   By Josh Beckerman 
 

YP Holdings, which was formed in 2012 with the assets of AT&T Inc.'s Yellow Pages business, will split its digital advertising and print directory operations into two companies.

The move is intended to "drive deeper product focus," YP said. The companies will have separate leadership but will work together through a strategic sales agency agreement.

Private-equity firm Cerberus Capital Management bought a majority of AT&T's Yellow Pages unit in 2012. The telecommunications company received $750 million in cash and a $200 million note from Cerberus, and retained a 47% ownership stake in YP Holdings at the time of the transaction. In 2011, the business units included in the deal had $3.3 billion in revenue.

YP's digital properties include the YP app and YP.com. The company has been working to increase its mobile efforts, and now receives more than half of its search volume from mobile devices.

Several media, pharmaceutical and industrial companies have split in recent years, looking to separate their high-growth businesses from legacy operations.

YP expects to complete the legal separation on June 30.

Write to Josh Beckerman at [e-mail]

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