Well, the long rumored merger of Dex One and SuperMedia is now real as plans to merge were formally released this morning. The combined entity will be called “Dex Media” and will have approximately $3.1 billion in revenue (based on 2011 results).
Peter McDonald, the current CEO of SuperMedia will lead the merged operation. Dex One CEO Alfred Mockett will step down at the completion of the merger, which is expected in the fourth quarter.
For the industry, this is the type of merger which had been expected for some time. It really was only a matter of which companies, and who would finance the move. As a result the U.S. Yellow Pages market will have three big players, YP Holdings (the old AT&T), the new combined Dex Media, and Yellowbook/now Hibu. Beyond these leaders, industry analysts such as BIA/Kelsey believe that further merger activity will coming from companies such as No. 4 sized Berry, as publishers look for the most efficient, sustainable platform in the rush to move from an all traditional print to a blended print/digital business. It is a little like speed dating – better find your partner before the music stops. Logic tells you that the pace of mergers should pick up now as others rush to find those partners. The band is getting a little weary.
For the employees of the two merged companies, you would have to expect more layoffs in operations and staff positions after the merger is completed.
For the Local Search Association, this provides more challenges as they have lost a major dues paying member.
This merger should add some more excitement to the upcoming BIA/Kelsey – SMB Digital Marketing 2012 Conference which will be held 9/17-9/19 in Chicago (link to conference information). Dex’s Mockett was scheduled to be one of the conferences keynote speakers. Won’t that be an interesting presentation…..
On a lighter note, does this mean the new marketing campaign will have the Dex Knows nerd wearing a cape????