AT&T, Yahoo end speculation, renew strategic partnership

Telecom giant AT&T Inc. and Yahoo Inc. have ended speculation that their relationship was shaky with plans to further strengthen the ties between them.

Both companies are discussing ways to expand into the mobile arena now that AT&T owns Cingular. The agreement also will allow the companies to introduce advertising on their co-branded mail service and offer Yahoo's services on AT&T's IPTV.

The two companies have made adjustments over the years to reflect the competitive conditions and the relative benefits each party brings to the relationship, said Terry Semel, chairman/CEO of Yahoo, in a statement. He said they have a common goal to increase the economic benefits for both parties.

Earlier this year, AT&T and Yahoo began advertising on the co-branded Web portal.