Wednesday, December 19, 2007

Microsoft, Viacom Sign Advertising Deal

Viacom and Microsoft said this morning that the two have signed a five year, advertising deal where the two companies will collaborate on advertising, content distribution, event promotions, and games. Financial terms of the deal were not disclosed, but the firms said the deal is worth approximately $500M between the two companies. The two companies said that Microsoft will license long and short form television and theatrical content from Viacom for use on MSN and Xbox; Viacom will use Microsoft's Atlas ad server on its U.S. websites; Microsoft will buy advertising on Viacom networks, including MTV Networks and BET Networks; and Viacom will work to become the preferred publishing partner on Microsoft's casual gaming platforms. Atlas, Microsoft's ad-serving technology, was acquired by the firm when it purchased aQuantive for $6B in August. Viacom is the owenr of BET Networks, MTV Networks, and Paramount Pictures; the firm's various brands include VH1, CMT, Nickelodeon, Neopets, Comedy Central, Spike TV, and Dreamworks, among others.