Microsoft has officialy announced about the half-billion dollar deal with media-giant Viacom. This new deal is very prestigious as it shows a positive sign that online advertising and content distribution offerings are getting more matured.
This is a five-year, multifaceted agreement, where Microsoft will be serving digital ads across various Viacom's Web sites like MTV and Comedy Central. On the other hand Viacom content will be distributed at Xbox Live and MSN channels. Microsoft has agreed to continue buying advertising for its own products from Viacom. Moreover, Viacom will use Atlas technology that Microsoft acquired after the $6 billion aQuantive deal for managing the placement of ads on its U.S. Web properties.
From the official press release, it becomes clear that the new deal is worth $500 million over five years. However detailed financial terms were not disclosed. Kevin Johnson, president of MicrosoftÃ¢â‚¬â„¢s Platforms & Services Division, said, "We are delighted to establish this long-term partnership with Viacom. ViacomÃ¢â‚¬â„¢s portfolio of original content and strong consumer brand connections are a terrific complement to MicrosoftÃ¢â‚¬â„¢s Web, gaming and digital advertising assets. This deal is another milestone in our quest to build a world-class advertising platform to serve the broad needs of advertisers and publishers. If ever there was a Ã¢â‚¬Ëœwin-winÃ¢â‚¬â„¢ partnership across two companies, this is it."
Other basic aspects of the deal are:
- Microsoft will have the authority to sell any remaining Viacom advertising space itself.
- Both the companies will jointly promote events like the MTV Video Music Awards and BET Awards through a co-branded Web site.
- Viacom will try to distribute more casual video games across Microsoft's channels.
After this deal Microsoft's stock reached to $34.79 on Wednesday, while Viacom's shares closed at $43.37.