Communications firm AT&T has announced that it is to sell AT&T Advertising Soltuions and AT&T Interactive to an affiliate of Cerberus Capital Management.
The deal will see AT&T receive a 47% equity stake in a newly formed entitle YP Holdings, alongside approximately $750 million in cash.
YP will honour existing union contracts as part of the deal, it has said
The business units generated in total £3.3bln in revenue for AT&T in 2011.
“This transaction makes strategic sense for both AT&T and Advertising Solutions,” said José Gutiérrez, president and CEO 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," added Gutiérrez.