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.