News Limited will sell its online business TrueLocal to Telstra-owned advertising and directories company Sensis, saying it is "no longer a priority" for the business.
The merger is yet to be approved by the Australian Competition and Consumer Commission (ACCC), but if passed the move will not affect the team at TrueLocal, currently led by general manager Simon Carson, or its operations.
News Limited's chief financial officer Stephen Rue in a statement: “TrueLocal is a terrific business. But the reality is it is no longer a priority for us as we have recently made substantial investments in Foxtel and Fox Sports and Business Spectator and Eureka Report.
“So, while we are sorry to see TrueLocal go, we recognise that Sensis is now the best home for it. [Sensis managing director] John Allan knows the business better than anyone and we wish him and everyone at TrueLocal all the very best."
Allan claimed the acquisition would bolster the company's Yellow Pages offering.
He said in a statement: “TrueLocal has built a strong reputation in connecting consumers with businesses across the country, through its high quality local business listings.
"TrueLocal also has an extensive library of ratings and reviews which enables consumers to make more informed decisions when they search for a local business.
"Consumers’ reliance on this type of content underlines why it’s important to make it accessible – which drives more traffic to the Yellow Pages network and generates better leads for our customers.”
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