One of 2007's most public spats, the well-documented fall out between Google and Viacom over copyright-infringing content appearing on Google-owned YouTube eventually resulted in the search engine giant being on the receiving end of a $1billion lawsuit. However, the media giant has rubbed further salt into the wound by announcing an advertising deal with Microsoft.The five-year deal is worth an estimated $500 million and will see Microsoft aid Viacom in placing advertisements across the media giant's network of entertainment websites in the U.S, including sites such as MTV.com. Microsoft will also be the exclusive seller of any remaining display advertising that Viacom has been unable to sell off. As a consequence of the deal, Microsoft will be able to licence and serve Viacom-owned content via their Xbox Live and MSN services, and will include MTV, Comedy Central and Paramount Pictures.
In addition, the deal will also see the companies work together on promotions and sponsorships for MTV networks and BET Networks award shows.
Kevin Johnson, president of Microsoft's Platforms & Services Division said of the deal:
"We are delighted to establish this long-term partnership with Viacom. 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."
The deal will also see online advertisement firm DoubleClick - currently at the centre of a controversial takeover by rivals Google - being replaced, in what can only be seen as a massive boost for Microsoft against their market rivals Google and Yahoo and their Atlas advertising platform.
Having already purchased online advertising firm aQauntive earlier this year, Microsoft - along with rivals Google and Yahoo - have raced against each other in the pursuit and purchase of new advertising businesses in order to negotiate exclusive agreements with content providers.
Microsoft has previously stated that the overall online advertising business will be worth an estimated $80 billion by 2010.
