by Alyssa Oursler | June 13, 2012 2:37 pm
Yahoo (NASDAQ:YHOO) has been on the rocks to say the least, but it’s hoping its latest move — a partnership with CNBC — could help turn things around.
Between passing up the purchase of Facebook, making buyouts that didn’t go anywhere and being faced with shrinking ad-revenue and a layoff of 14% of its work force, it’s almost no wonder talks of a possible merger with AOL (NYSE:AOL) have been on the horizon — if you believe two struggling tech giants are better than one, that is.
Such a merger has yet to come to fruition, though, and instead Yahoo is taking a different approach, as evident with the partnership: creating original content.
The agreement with Comcast‘s (NASDAQ:CMCSA) CNBC will allow Yahoo to produce some original news stories and videos while featuring CNBC content on the Yahoo Finance page, along with a breaking news ticker and new material on its stock quote pages.
“This partnership represents a paradigm shift for Yahoo,” Rob Barrett, Yahoo vice president of news and finance, told The Associated Press. “We’re really moving from having many partnerships in which Yahoo has a small amount of original content to building up our own original profile and partnering with the best in each category to build a premium experience.”
CNBC and Yahoo expect to share revenues, and Barrett said the duo should garner higher ad rates. CNBC digital senior vice president Kevin Krim said advertisers should be attracted to the pair’s greater ability to reach highly informed businesspeople, a valuable audience.
In October, Yahoo made a similar deal with Walt Disney‘s (NYSE:DIS) ABC News.
Source URL: http://investorplace.com/2012/06/yahoo-strikes-a-deal-with-cnbc/
Short URL: http://invstplc.com/1fvjWlP
Copyright ©2016 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.