Issue: An Independent Leader Exits the
a political force in the independent Yellow Pages publishing community,
has sold his print directory business, SunShine Pages, to EATEL, a Louisiana-based
competing local exchange carrier (CLEC). Terms of the purchase were undisclosed.
However, SunShine Pages had $13 million in revenues in 1998. Based on
the revenue multiples being paid for quality Yellow Pages publishers,
TKG estimates the sale price at between $40 million and $65 million.
EATEL is a competitive
local carrier trying to take market share from the incumbent, BellSouth.
Its acquisition of SunShine Pages follows a joint venture between the
two companies to publish a Yellow Pages directory in Baton Rouge, LA.
EATEL also provides long-distance telephony, wireless, Web hosting and
e-commerce, and is the largest ISP in Baton Rouge.
As a publisher and
as a past chairman of the Association of Directory Publishers (ADP), Bill
Hammack was an articulate and tough-minded competitor to the regional
Bell operating companies. He led the independents through a number of
battles over access to subscriber listings as chairman of ADP's legislative
committee, and he also presided over the ADP at the nadir of its relationship
with the Yellow Pages Publishers Association.
Hammack will remain
active in ewebsystem.com, a SunshinePages subsidiary he created to sell
bundled online services to small and medium-sized enterprises. Still,
in his own words, he is now "out of the Yellow Pages industry."