It’s not a merger but it sure is a big deal. Viacom and Microsoft have announced today that they have signed a five-year $500 million dollar partnership in which Viacom will supply the Big M with videos, movies and games while Microsoft will sell advertising for Viacom’s Internet sites.
The specifics of the deal will allow Microsoft to license entertainment media from Viacom’s MTV Networks, BET, and Paramount Pictures for use on Microsoft’s MSN and its Xbox 360 game console.
Microsoft will also buy advertising on Viacom websites and will do joint promotions on various award shows and sponsorships on MTV and BET.
Kevin Johnson, president of Platforms and Services at Microsoft beamed. "Viacom’s portfolio of original content and strong consumer brand connections are a terrific complement to Microsoft’s Web, gaming and digital advertising assets. This deal is another milestone in our quest to build a world-class advertising platform to serve the broad needs of advertisers and publishers. If ever there was a ‘win-win’ partnership across two companies, this is it."
With the muscle of Viacom behind some of the content on Xbox Live Marketplace, Microsoft further tightens the noose around their lead on being the premier online service for gamers while Viacom gets more exposure for their movies and television content.
A sweet deal indeed.
[via latimes]
