Netscape, Yahoo partner on Guide

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Netscape Communications Corp. and Yahoo! Wednesday announced that Yahoo! will create, program and handle advertising sales for a new information service housed on Netscape's home page called Netscape Guide by Yahoo!. Yahoo! will pay Netscape a one-time fee of $5 million for licensing rights and has agreed to generate $25 million in advertising revenue over the next two years, of which Netscape will receive an undisclosed percentage. Replacing Netscape's Destinations area, the guide will be organized into eight categories including business, sports, travel, local info and entertainment. It is expected to launch early summer.

Netscape on Tuesday announced deals with four search engines, including Yahoo! to be featured on the Netscape Search page. Wednesday's deal gives Yahoo! significant play on Netscape's site and also generates major ad sales pressure. Yahoo! sold about $21 million in advertising on its sites last year, according to Jupiter Communications.

Copyright March 1997, Crain Communications Inc.

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