http://staging.blog.biakelsey.com/index.php/2008/02/08/reality-check-on-yellow-pages/ LOCAL MEDIA WATCH. The Nexus of All Things Local Mon, 01 Jun 2015 22:23:47 +0000 hourly 1 https://wordpress.org/?v=4.2.39 http://staging.blog.biakelsey.com/index.php/2008/02/08/reality-check-on-yellow-pages/comment-page-1/#comment-145616 Mon, 11 Feb 2008 16:21:11 +0000 http://blog.kelseygroup.com/index.php/2008/02/08/reality-check-on-yellow-pages/#comment-145616 The main reason for these sell offs is the crippling debt loads on these companies’ balance sheets. Both RHD and IAR have ~10b in debt on the books and with the cash flow growth looking like it is going to stall — or even go negative — for the next few years, this really creates havoc on the LBO model that created these capital structures. The interesting thing now in my opinion is with these companies having very little equity value and borrowing capacity, how do they acquire the assets necessary to transition to a complex digital world where they no longer have a monopoly on smaller, local advertisers.

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