Yahoo! will announce Wednesday it has secured an exclusive partnership to sell most of Bebo's display advertising. Bebo is England's leading social networking site and reaches about 11.6 million people in England and Northern Ireland. It is the first time Yahoo has agreed to supply advertising for a social network site, and it fits nicely with Yahoo's recent strategy of finding revenue from sites besides its own on the Web. MySpace and Facebook, the largest American social network sites, have already struck deals with Microsoft and Google. Toby Coppel, managing director of Yahoo Europe said, "It's a core step for us in building up the largest and most effective advertising network. It's a big deal." Yahoo will also integrate its community driven knowledge service, Yahoo Answers, on to Bebo, and create a toolbar so users can monitor Bebo even when they are not on the site. The financial terms of the deal were not disclosed, but Yahoo should start receiving revenue from the new deal in the fourth quarter. Yahoo stock stood unchanged at $23.71 in pre-market trading.
Sources: CNN, MSN
Commentary: Yahoo Overhaul Unlikely -- WSJ • Yahoo's Paid Search Looks Good, But Banner Ads Still Weak • Yahoo to Acquire Targeted Ad Vendor BlueLithium for $300M
Stocks/ETFs to watch: YHOO. Competitors: GOOG, MSFT. ETFs: FDN, HHH
Earnings call transcript: Yahoo! Q2 2007
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