Viacom, Microsoft Ink Mega Deal

Viacom and Microsoft Corp. announced a strategic alliance to collaborate on advertising, content distribution, event promotions, and games over the next five years. Among the agreement’s numerous components, Microsoft will non-exclusively license long- and short-form television and theatrical content from Viacom’s cable TV and motion picture business for use on Microsoft properties, including MSN and Xbox 360. Details of the financial agreement were not disclosed, but the companies project the base value of the deal at $500 million in financial considerations and business services over the agreement's five-year length, including revenue sharing, guarantees, and licensing agreements.