The story is all over the financial press today that AT&T will acquire BellSouth for US$67 billion. Based on 2005 revenues, the combined Yellow Pages divisions of the two companies will have total revenues of about US$5.8 billion. I’d say this will make it the world’s largest directory publisher, but that was already true of AT&T’s US$3.7 billion Yellow Pages division. The newly enlarged publishing unit will be the incumbent publisher in 21 states.
This deal is not exactly a surprise, since it was widely reported that SBC (before it acquired AT&T and adopted its name) made a run at BellSouth before it pursued the AT&T deal. And AT&T and BellSouth’s Yellow Pages operations already jointly own YellowPages.com, a deal that led to much speculation that it was a precursor to a combined Yellow Pages operation. Well, that now appears to have happened, even if Yellow Pages was not a driving force in the transaction.
We will have a lot more to say about this deal in this week’s Local Media Journal. This is a big one.