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Viacom and Microsoft sign five-year advertising deal

Viacom Inc. and Microsoft Corp. have partnered to collabo­rate on advertising, content dis­tribution, event promotions and games. 

Financial terms were not dis­closed but, according to a Micro­soft press release, 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 and guarantees and content licensing agree­ments. Representatives from both companies did not respond to inquiries in time for press. 

According to the terms of the agreement, Microsoft will license content from across Viacom’s cable network and film and TV content, including MTV, Com­edy Central, BET and Para­mount Pictures, for use on Mi­crosoft properties such as MSN and Xbox 360. Microsoft’s At­las division will become the ad server for Viacom’s US Web sites and Microsoft will have the exclusive right to sell remnant display advertising inventory on Viacom’s US Web sites.

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