AT&T and BellSouth is a $67 billion telecom rollup, but local advertising is involved too. The telcos’ respective Yellow Pages will be impacted by the rollup, as well as their ties with Yahoo, vendors and the Yellow Pages trade associations.
For starters, the deal makes the selloff/spinoff of the Yellow Pages units all-but-inevitable. The telcos needs tens of billions to install fiber-to-the-curb for IPTV, and it has made sense to sell off the YPs to produce some of the revenue. But this seals the deal.
As for side effects of the deal, some fallout is likely at Yahoo. Both companies sell for Yahoo Yellow Pages and Yahoo Local. And in return, Yahoo doesn’t sell against them. But maybe the arrangement has run its course.