The agreement is subject to ACCC approval – which is by no means assured. The ACCC has been watching acquisition activity in this sector very closely

Sensis Managing Director, John Allan, said the acquisition would add value to customers of the Sensis Yellow Pages network. “TrueLocal has built a strong reputation in connecting consumers with businesses across the country, through its high quality local business listings.

“It 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.”

News Limited’s chief financial officer Stephen Rue said TrueLocal was 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. John Allan knows the business better than anyone and we wish him and everyone at TrueLocal all the very best.”

If the ACCC approves the acquisition, TrueLocal will continue to operate in its current form whereby users can access local search information, reviews and other services. TrueLocal general manager Simon Carson and his management team will continue to lead the business.

Telstra will be hoping for better luck with TrueLocal than it had with Trading Post, Australia’s biggest pre-Internet classified publication, which it acquired for $636 million in 2004. It became part of the Telstra Advertising Network (TAN), a failed attempt by Telstra to match eBay and other online advertising sites. TAN was formed only in August 2011 from a merger of Sensis Digital Media and BigPond Advertising operations, put morphed into Telstra media when Telstra outsourced many of its functions to Multi Channel Network, a joint venture between Foxtel and Fox Sports, earlier this year. Sensis is now a separate division once more, and TrueLocal will become part of it.

The price of the acquisition has not been revealed.