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.
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