Viacom, Microsoft ink digital content partnership

Media giant Viacom announced a strategic content and advertising alliance with Microsoft spanning across the two companies and multiple digital platforms. Per terms of the agreement, Microsoft will license long and short-form television and theatrical content from Viacom divisions including MTV, Comedy Central, BET and Paramount Pictures for use on properties like MSN, MSN Mobile and Xbox 360. Microsoft's Atlas division will serve advertisements for Viacom's U.S. websites, with Microsoft retaining exclusive rights to sell remnant display advertising inventory--in addition, Microsoft will purchase advertising on Viacom broadcast and online networks, and the firms will collaborate on promotions and sponsorships for MTV Networks and BET Networks award shows. Viacom will also become a preferred publishing partner across Microsoft's casual gaming platforms.

While financial specifics were not released, the deal boasts a projected base value of approximately $500 million in financial considerations and business services over its initial five-year duration, and features a combination of revenue sharing provisions, guarantees and content licensing agreements. "This is a novel and comprehensive partnership that demonstrates the scale of our digital operation and the value of our branded content across all distribution platforms," said Viacom president and CEO Philippe Dauman in a prepared statement.

For more on the Microsoft/Viacom deal:
- read this release [1]

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