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AT&T/Yahoo Deal on the Outs?



Once again, rumors are flying. AT&T and Yahoo have worked together since 2001, when Yahoo signed a deal wtih SBC. In exchange for $200 to $250 million a year, Yahoo has been providing subscribers with a personalized home page and Yahoo services to AT&T’s DSL subscribers.

Is something happening today? Tomorrow? No. The Wall Street Journal covered the story, noting that the deal is set to expire in April 2008. The talk of renegotiations has made Yahoo’s stock take a hit.

TechCrunch gives a few highlights and observations from the WSJ article:

  • Google over the past year has played a high-profile role in paying companies that help expand its online services and advertising. Those offers, bankrolled by Google’s Internet ad success, have roiled the market for deals structured like Yahoo and AT&T’s — as Google pays partners rather than charges them.
  • Why, then, has AT&T “quietly painted over its colorful vans, expunging the Yahoo logo; the vans now sport AT&T’s new blue insignia alone”?

More coverage on GigaOM and E-Commerce Times.