Feb, 2002 : Broadwing Sells Telephone Directory Business

📅 February 6, 2002 - Broadwing Inc. (broadwing.com -> lumen.com) announced yesterday adefinitive agreement to sell a substantial majority of Cincinnati BellDirectory, its yellow page directory publishing business, for $345 millionin cash to a new company, CBD Media Inc. (cbdnetwork.com), funded bySpectrum Equity Investors and operated by the existing Cincinnati BellDirectory management team.

Doug Myers, the current VP and GM of Cincinnati Bell Directory will be namedpresident and CEO of CBD Media Inc.
Advertisers in the Cincinnati Bell Directory and the 2.4 million people whoreceive its directories will see no difference in the quality, branding,billing, sales, customer service, or management of the yellow page books.Cincinnati Bell Directory publishes 15 yellow page directories in theGreater Cincinnati/Northern Kentucky area.
"In making our decision, it was important to enter into a relationshipassuring there will be virtually no change for our advertisers and readers,"said Broadwing chairman-elect and CEO Rick Ellenberger. "Broadwing willfocus on its core communications business while CBD Media will continue todeliver the Cincinnati Bell Directory as we have always done."
Under the agreement:
The directories will continue to be published under the distinctiveCincinnati Bell Directory brand under a long term licensing agreement.Broadwing will continue to act as the billing and customer serviceagentCincinnati Bell Directory's current partners, including LM Berry,will continue in their rolesCincinnatiExchange.com, which provides online directory listings,shopping, news, and electronic services, will continue its integration andelectronic linkage with Cincinnati Bell, the local communications subsidiaryof Broadwing Inc.Employees of Cincinnati Bell Directory will become employees of CBDMediaBroadwing will remain a small minority owner in the business whichwill be accounted for on a cost basis
The sale is estimated to close within 30 days, subject to customary closingconditions. Merrill Lynch & Co. acted as the financial advisor to Broadwing.