Viacom, Microsoft Ink $500 Million Partnership for Content, Ads

Dec 19, 2007  •  Post A Comment

Viacom is teaming up with Microsoft in a content and advertising alliance valued at $500 million.
Microsoft will license long- and short-form content from Viacom’s cable networks and movie studios for use on MSN, Xbox 360 and other platforms. The licenses are non-exclusive.
Viacom owns Paramount Pictures and DreamWorks on the film side, as well as numerous cable networks including MTV, VH1, Nickelodeon and Spike.
Viacom will use Microsoft’s Atlas division as ad server for its Web sites.
Microsoft also will have the exclusive right to sell remnant display advertising inventory on Viacom’s U.S. Web sites.
As part of the deal, Microsoft will buy advertising on Viacom cable and online networks over a five-year period. The companies will work together on promotions and sponsorships for MTV Networks and BET Networks award shows.
“This is a novel and comprehensive partnership that demonstrates the scale of our digital operation and the value of our branded content across all distribution platforms,” said Philippe Dauman, president and CEO of Viacom.
“This deal is another milestone in our quest to build a world-class advertising platform to serve the broad needs of advertisers and publishers,” said Kevin Johnson, president of Microsoft’s platforms and services division.


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