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December 19, 2007

Viacom does content and advertising deal with Microsoft

Posted by David Hunter at 2:09 PM ET.

Viacom apparently isn’t put off by Microsoft’s abandonment of the URGE music service that their MTV subsidiary created with Microsoft, because they have signed on for a new long term advertising and content deal.

Viacom Inc. (NYSE: VIA and VIA.B) and Microsoft Corp. today announced a broad-based, strategic alliance under which major divisions of both companies will collaborate on advertising, content distribution, event promotions and games over the next several years.

The deal includes the following:

“Detailed financial terms were not disclosed, but the deal has a projected base value of approximately $500 million in financial considerations and business services between the two companies over the initial five-year length of the agreement.” No word on how the bucks balance between the two.

If I had to offer a capsule description, it would be “Microsoft loves banner ad sales and old media.”

Update: Todd Bishop observes that the previous Viacom online ad server was Doubleclick which is in the process of being acquired by Google (over complaints by Microsoft and others) and that Viacom is suing Google over alleged copyright infringement on YouTube.

Update: Google: Microsoft-Viacom deal helps our DoubleClick defense.

Filed under Alliances, Coopetition, DoubleClick, General Business, Google, MSN, MSN Content, Microsoft, Online Services, Public Relations, Viacom, YouTube, aQuantive, adCenter

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