Telstra sells Yellow Pages
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In news that has just come to hand, Telstra has just announced that they have sold the majority stake of Sensis (the division that owns Yellow Pages, True Local and the White Pages).
According to reports Telstra has sold 70% of Sensis to the US private equity firm Platinum Equity for $454 million. Telstra will retain ownership of the other 30%.
This sale values Sensis at $649 million, well less than the $3 Billion+ that Telstra could have sold Sensis for before the Global Financial Crisis. For example, New Zealand's Yellow Pages business was sold for NZ $2.24 Billion in 2007.
The rapid decline of Yellow Pages has hit Sensis hard with Yellow Pages print revenues declining by 20% last year. Revenues for Sensis were as high as $2.2 Billion in the 2008-2009 Financial Year, and have fallen to under $1.4 Billion in the last Financial Year. The growing trend of Internet Marketing has hit Sensis' traditional print advertising income hard.
For more information see:
- http://www.theage.com.au/business/telstra-sells-majority-stake-in-sensis-20140113-30per.html
- http://www.theage.com.au/business/telstra-faces-scrutiny-over-sale-of-sensis-20140112-30ooj.html
What do you think will happen to Yellow Pages and True Local (also owned by Sensis) now?
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