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Microsoft and Viacom today announced a multi-year content and advertising partnership. Under the deal, Microsoft will become the exclusive seller of remnant display ads on Viacom's Web sites. ("Remnant" refers to ad space that Viacom cannot sell through its own sales force.) In addition, Microsoft will use technology from aQuantive, which it recently bought, to serve ads on Viacom's Web sites; it will buy ads on Viacom's online and broadcast networks; and it will license Viacom content, on a nonexclusive basis, for use on outlets like MSN and the Xbox 360.
These kinds of online advertising and distribution deals have become important markers, especially when they involve major companies and have large dollar figures attached to them. Microsoft and Viacom are certainly major companies, and while they didn't disclose detailed financial terms, the companies pegged the "base value" of the deal at approximately $500 million over five years.
Microsoft Wins Viacom Ad Deal From DoubleClick [bits.blogs.nytimes.com]
Oh man, that was Bill kicking Google in their nads right there.
I doubt if the kick was too painful. After all, Microsoft just demonstrated what the FTC has already concluded: that there really is competition in the marketplace, and Google's acquisition of DoubleClick doesn't violate antitrust laws.
Microsoft and Viacom are both aligned to control the medium as much as possible and bind customers in a reclusive setting where they can't escape from - for example, their respective push and opinions concerning copyrights laws.
Whereas Goggle and many others represent a more laisser faire approach to business where even if they consolidate, they believe that information should flow through without borders - hence organizing the world's information - which is diametrically opposed to how Viacom and Microsoft see the marketplace.
It don't believe this deal is a loss for Google, as a deal with Viacom, besides the weight that this media group carries is a deal with a backward way of handling information and distributing it to the masses.
I'm glad that all the bad guys are on the same side now...
[edited by: Harry at 4:27 am (utc) on Dec. 28, 2007]