Verizon's filing with the Securities and Exchange Commission said that no final decision had yet been made, but that "the company continues to expect to complete a disposition of its directories publishing operations--which could include the spin-off, a sale or other transaction, or combination of these alternatives--by the end of 2006."
If the company goes through with the spin-off, one possible result is that its Internet Yellow Pages, SuperPages.com--which claims approximately 20 percent of the $1.3 billion estimated online local market--will expand its offerings and products, said Neal Polachek, analyst with The Kelsey Group. "It opens the door to a broader strategic view of their business," he said.
He added that the Yellow Pages in Canada took on a much more expansive business model after Bell Canada sold off the unit four years ago. The spun-off Yellow Pages Group last year bought another directory company, Advertising Directory Solutions Holdings Inc., and this February it purchased Trader Media Corporation, which hosts eight Web sites, including www.Autotrader.ca.