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Viacom, Microsoft form ad partnership

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New York—Viacom and Microsoft Corp. announced they have signed a broad-based, multiyear deal to collaborate on advertising, digital content distribution, event promotions and games.

The ad portion of the agreement calls for Microsoft's Atlas AdManager to become the ad server for Viacom's Web sites. Microsoft will also have the exclusive right to sell remnant display ad inventory on Viacom's sites.

In addition, Microsoft will buy advertising on Viacom broadcast and online networks over a five-year period, and the companies will work together on promotions and sponsorships.

The deal has a projected value of approximately $500 million in financial considerations and business services in the initial five years’ of the agreement, the companies said, based on revenue sharing provisions, guarantees and content licensing agreements.

—Carol Krol

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