Two Significant players of the local directory have merged together for getting rid of their debts and to gain more market share.
Online PR News – 12-September-2012 – Australia – San Francisco, CA - Significant players in the field of local directories, Dex One Corp. and SuperMedia Inc. both of whom have been under high debt and struggling for a long time, have now unveiled a solution that might work to get them out of their current situation. A few days ago they decided to merge..
According to fact and figures, Dex One will be given 60% of the stakes to shareholders in order to merge with the second company, SuperMedia, whose shareholders will enjoy 40% of the stake.
Both the companies after merging together experienced growth in their stock prices as Dex One experienced a gain of 31% to $1.63, whereas SuperMedia was able to rise up 41% to $3.64. However, their net value in the market is still small at about $140 million.
According to media analyst, Gordon Borrell of Borrell Associates, the spending of the people of U.S. is very high . He also mentioned that last year (2011) the market for the yellow pages completely crashed with sales dropping 40% percent for a total of only $8.6 billion in losses. These is in stark contrast to the figures of 2005 which were significantly high, at around $14.2 billion.
Borrell thinks that the merging companies will still be struggling for about four years or so before they start generating a significant gain in revenue.
Applying different strategies and advertising themselves through digital media is just a few of the ways these companies plan on getting out of the present crisis. According to them, they think that digital media will have more impact on their sales as compared to print media.
Yasabe.com/es/ provides an online directory service in Spanish and facilitates users of the language with an extensive directory on information of people as needed by users on the web.
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