Archive for the 'Yellow pages' Category

The value in directories


It continues to amaze me that there are still telcos in this world that are still looking to sell their directory business.  Yes, if you take a look at the recent purchase price of directory firms, it is easy to see why telcos are so enticed to sell.  Just look at what some firms have sold for in recent years.

Acquirer/Target/Amount (Euros billion)

  • KKK and Goldman Sachs / PagesJaunes / 5.6
  • RH Donnelley / DexMedia / 7.9
  • TPI / Yell / 3.3
  • BC Partners / SEAT  5.6
  • Carlyle and WCA&S / QwestDex / 7.2
  • RH Donnelley / Sprint / 2.3
  • Bain Capital / SuperPages Canada / 1.3
  • KKR / Bell Canada Directories / 1.9
  • Apax and Hicks Muse / BT Yell / 3.5
  • Macquarie / Yellow Brick Road / 2.7
  • Apax and Cinven / VNU World Directories / 2.1

But there is a reason why both private equity and print firms are jumping at the opportunity to acquire these assets.  These directory assets certainly generate a healthy and constant revenue stream.  But more importantly, there are indirect assets (customers, brand) that are most crucial.  Specifically, for telcos, outside of their basic infrastructure (which depreciates and constantly needs upgrades), their brand and customers are their core assets.  Why would you ever give that up, particularly if you are a fixed line carrier.  It is hard to believe that a short-term cash infusion will, in the long term, provide the necessary foundation for growth if you sell your customer base and brand away.

The US dominates the yellow pages market worldwide


Did you know that the size of the yellow page market in the US is approximately $14 billion, according to the Yellow Pages Association.  US accounts for more 50% of the total market, roughly $26 billion worldwide.  wow