AT&T has decided to sell a 53% stake in its Yellow Pages unit to Cerberus Capital Management for $950 million.
Jennifer Fritzsche, an analyst with Wells Fargo, referred to the valuation as “sensible” at roughly 2.1 times an estimate for EBITDA, “given that the directory business is declining fairly quickly.”
Beyond “sensible”, AT&T may have well decided that they would incur undue risk of intervention from state and federal regulation authorities if they had pushed for a much higher valuation. I had earlier suggested it would be grossly irresponsible if AT&T overvalued their Yellow Pages, and, after Verizon’s divestment of Idearc/SuperMedia, I’m not sure another company could get away with an unreasonably high price tag. (more…)




Local Search’s Lacuna
Wednesday, May 12th, 2010Tyler Bell wrote a very interesting post today, over at O’Reilly Radar: “Why check-ins and like buttons will change the local landscape“. In it, he talks about how a lack of common locality conventions is perhaps the main stumbling block of advancing local search technology, and he points to Gary Gale’s Geo Tower of Babel concept wherein different systems refer to places and placenames in different ways, meaning different things. Essentially, every different local info system out there refers to common places with variations on names and differing geocoordinates, and this lack of accurate specificity across systems causes many problems.
Tyler states that “developers are left holding the buck” in this issue, and he cites three top reasons for it. His top three reasons are the most interesting part of the piece, because I think he really describes many of the basic challenges of the local search industry beautifully. His first reason, “Focus on listings data as end rather than means” is described like this:
His other two reasons, “Attempts at distinction with common data” and “Over-fascination with pins on maps” are good, too.
However, I think his ideas on resolving the issues are unrealistic. (more…)
Tags: directories, internet yellow pages, IYP, local search, places
Posted in General Commentary, local search | 4 Comments »