Yellow Pages Interested in Merger With Yahoo

The company that owns Yellow Pages, YP Holdings, is likely to make a bid for purchase of core assets of Yahoo business, Bloomberg has reported.

According to the report, the deal structure will be Reverse Morris Trust, which will allow YP Holdings to merge with Yahoo in a tax free transaction.

This kind of structure is the only option for YP Holdings because its current worth is at $1.5 billion and the analysts have put a price tag of about $6 billion for Yahoo’s core web properties which are on sale.

Cerberus Capital Management controls Yahoo. It is a private equity firm which bough YP in 2012 for a consideration of $950 million. AT&T holds a minority stake in YP. So if the deal succeeds, then AT&T will also own part of Yahoo.

Monday is the deadline for the preliminary bids for core business of Yahoo and firms like Verizon, TPG and Bain are likely to bid.

If the YP deal matures, then Yahoo has one big advantage because YP has the largest local advertising field team in the US with more than 3,300 sales representatives which can be leveraged for online advertisement business of Yahoo.

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