Companies sign landmark multi-year deal to collaborate on content distribution, advertising, event promotions and gaming Microsoft's Atlas to become exclusive ad serving platform for Viacom U.S. web sites
Viacom Inc.and Microsoft Corporation 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 comprehensive agreement spans across the two companies and includes a number of significant components. Among them:
-- Microsoft will license, on a non-exclusive basis, long and short-form
television and theatrical content from across Viacom's cable network
and motion picture businesses, including MTV, Comedy Central, BET and
Paramount Pictures for use on Microsoft properties such as MSN and Xbox
360.
-- Microsoft's Atlas division will become the ad server for Viacom's U.S.
websites and Microsoft will have the exclusive right to sell remnant
display advertising inventory on Viacom's U.S. websites.
-- Microsoft will buy advertising on Viacom broadcast and online networks
over a five-year period and the companies will work together on
promotions and sponsorships for MTV Networks and BET Networks award
shows;
-- Viacom will work with Microsoft on opportunities to become a preferred
publishing partner across Microsoft's casual gaming platforms.
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. The deal includes a combination of revenue sharing provisions, guarantees and content licensing agreements. The agreements contemplate the potential for expansion of the transactions.
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