Microsoft joins up with Viacom for online ads and content sharing

Posted Dec 20th 2007 3:13PM by Brian White
Filed under: Deals, Microsoft (MSFT), Viacom (VIA)

Microsoft (NASDAQ: MSFT) has joined up with media giant Viacom (NYSE: VIA) to share revenue and license content across its platforms -- like its online MSN and Xbox 360 platforms -- to the tune of $500 million.

The partnership will likely have an impact stretching over five years ($100 million a year) and will involve advertising in addition to content and revenue sharing during that time. Microsoft will gain the ability to get Viacom's bevy of popular content on its properties, with lucrative shows and television channels Comedy Central, MTV Networks and Nickelodeon among others.

Microsoft will also buy ads on Viacom's television networks as well as its online properties, and Viacom will most likely eventually drop Google's (NASDAQ: GOOG) AdSense platform for Microsoft's adCenter online advertising system in a blow to the search leader. Is Microsoft serious about competing with Google's stranglehold on internet advertising? This latest deal with Viacom would seem to suggest a definite yes.

Tags: Microsoft, Microsoft AdCenter, Microsoft Viacom, MicrosoftAdcenter, MicrosoftViacom, MSFT, VIA, Viacom