AT&T, Yahoo Ink Advertising Deal
AT&T and web services giant Yahoo announced a multi-year deal that promises to create new ad-based revenue opportunities via mobile handsets and PCs. The companies said the agreement calls for revenue sharing, but did not disclose detailed financial terms. Per terms of the deal, Yahoo will provide multi-platform search and display advertising, including access to co-branded versions of Yahoo's mobile Web properties. AT&T's Yellowpages.com will also supplant Yahoo Local Search as the primary local search experience for AT&T wireless and broadband customers.
In effect, Yahoo will exchange annual access fees derived from AT&T for advertising revenue, following on the heels of similar deals with Vodafone and Rogers Wireless. In a conference call Wednesday--during which time Yahoo confirmed reports it will layoff 1,000 employees--Yahoo CFO Blake Jorgenson said agreements like the AT&T deal will cut $150 million to $200 million a year from Yahoo's revenue, although the restructured contract calls for AT&T to make a onetime payment this year of $300 million to $400 million.
“Our goal is to connect our customers to their worlds, wherever they live and work,” said Randall Stephenson, chairman and CEO, AT&T Inc. “This new agreement with Yahoo! reinforces AT&T’s leadership in wireless and broadband and enables both companies to bring their respective strengths to the table to benefit AT&T’s customers. It also reflects the benefits of establishing strong alliances in business today.”
”Since 2001, the AT&T Yahoo! alliance has been a benchmark in both the telecommunications and Internet industries,” said Jerry Yang, co-founder and CEO, Yahoo! Inc. “The combination of Yahoo!’s innovative mobile and PC applications and advertising solutions, with AT&T’s leadership in customer connectivity, mobility and robust networks once again raises the bar for the entire industry and further establishes Yahoo! as a starting point for consumers on the Internet.”
The agreement calls for revenue sharing, but detailed financial terms were not disclosed. [FierceMobileContent/FierceWireless]
Related articles:
T-Mobile UK Inks Advertising Deal With Yahoo
Yahoo, America Movil Ink Mobile Search Deal
Yahoo! Rolls Out Global Mobile Display Advertising Platform
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