AT&T is selling its Yellow Pages business to the private equity firm Cerberus Capital for $950 million and a minority stake in the new entity that will run the business.
The Dallas company says it wants to focus on its core wireless, IP and cloud-based businesses. The transaction will have a minimal effect on its earnings this year.
Cerberus is paying AT&T Inc. $750 million in cash and a $200 million note, plus a 47 percent stake in YP Holdings LLC.
The assets being sold include the print directories, websites and mobile app which generated revenue of $3.3 billion last year. It excludes the recently formed AT&T AdWorks, which sells advertising offerings across online, mobile and TV.