Dex One Corporation and SuperMedia Inc. today announced that their Boards of Directors have approved a definitive agreement under which Dex One and SuperMedia will combine in a stock-for-stock merger of equals, creating a national provider of social, local and mobile marketing solutions through direct relationships with local businesses.
Upon closing of the transaction, Dex One shareholders are expected to own approximately 60 percent and SuperMedia shareholders are expected to own approximately 40 percent of the combined company.
Two ugly companies with a dim future get married and make one big ugly company with an even uglier future.
Why? It was planned years ago from the getgo. It is no longer a rumor.
Idearc and RH Donnelley both were loaded with debt. Both companies went bankrupt. The Paulson Hedge Fund has a stake in both companies. Both companies experience naked short sellers attacking the value of the business and manipulating the stock price. So much in common it makes you think they are perfect for eachother.
Idearc (one of the leftover marketing names from the “Verizon” brand development research) was doomed from the day Ivan (CEO of Verizon) decided to spin the company off with 9 billion in debt, without the assets or collateral to back it up. Idearc’s incompetent management team has no loyalty to the hardworking people (and teachers union) who invested in Verizon blue chip stock and subsequently lost it in Idearc stock. But Hedgefunds like Henry Paulson shorted the company and them bought both Dex and SuperMedia stock after bankruptcy. It was perfectly timed 2 years after SEC rules of course. No IRS penalties for Ivan! Just a bunch of unhappy business owners who have a great reason to hate the yellow pages.
It is this sort of Crony capitalism that sparked the Tea Party Revolution… But we at Idearc remembered Scott Klein the CEO ranting about his love of the Hope And Change Chicago politicians. I prefer supporting small businesses like the ones I have helped for the last decade. They despise this marriage.
Come to think of it, maybe it would be good if they reduced the saturation distribution business altogether?
When I left SuperMedia in 2009 they still had over 80 sales reps in the local Dallas sales office. Last I heard they are down to less than 10 reps. The company has lost over 22% of its business year over year.
This is a move to keep the stock above $1 per share and avoid being listed only on the over the counter “pink sheets.”
Real small business online marketing takes a less “protectionist” 12 month contract product centric focus and a more holistic transparent client-side strategy that focuses on “content marketing.”