Verizon Spins Off Print, Online Directories
Verizon Communications will spin off its print and online telephone directories, including Internet local search portal SuperPages.com, the company announced yesterday.
The spinoff will result in the creation of a new public company, Idearc Inc., on Nov. 1 with distribution of stock to Verizon shareholders.
The Verizon division, until now known as Verizon Information Services, publishes a total of 1,200 directory titles in 44 states. The company says SuperPages.com has received more than 2 billion search queries so far this year and hosts 60,000 Web sites for small and mid-sized businesses.
In 2005 the Information Services division reported revenue of $3.37 billion and operating profit of more than $1 billion. While Verizon did not break out print versus online revenue, it reported that SuperPages saw a 22% jump in revenue during 2005. That growth declined to 12.2% in Q2 2006.
Last December, Verizon suggested that it might divest itself of the directory businesses to concentrate on core phone, Internet, wireless and video services. In July, the company filed for a possible spinoff of the division with the Securities and Exchange Commission but said it had not decided against an outright sale.
