Yahoo, AT&T Expand Advertising Partnership

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Yahoo! Inc. and AT&T Inc. announced Tuesday that they have signed a multi-year deal to share revenue from advertising on mobile phones and personal computers.  This deal expands upon a pre-existing alliance the companies have shared since 2001, and will bring Yahoo advertising to approximately 70 million AT&T customers.

Terms of the deal, which includes revenue sharing, were not disclosed. Nevertheless, the new agreement covers both pay-per-click web search ads and display ads where are preferred by corporate brand advertisers.  Yahoo will also create a “new look and feel ” for AT&T’s web portal.

Marco Boerries, executive VP of Yahoo’s Connected Life division, said in a conference call that, “We are now the search engine and the advertising engine behind all of (AT&T Mobility) customers.”

This announcement came on the heels of a disappointing forecast by Yahoo.  Shares fell last night in after-hours trading by about 11%.

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