Viacom Inc. and Microsoft Corp. announced an alliance under which major divisions of both companies will collaborate on advertising, content distribution, event promotions and games over the next several years. The comprehensive agreement spans across the two companies and includes a number of significant components. Among them: Microsoft will license, on a non-exclusive basis, long- and short-form television and theatrical content from across Viacom's cable network and motion picture businesses; and Microsoft's Atlas division will become the ad server for Viacom's U.S. websites and Microsoft will have the exclusive right to sell remnant display advertising inventory on Viacom's U.S. websites. Detailed financial terms were not disclosed, but the deal has a projected base value of approximately $500 million in financial considerations and business services between the two companies over the initial five-year length of the agreement. The deal includes a combination of revenue sharing provisions, guarantees and content licensing agreements.

(www.microsoft.com, www.viacom.com)  

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