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Yahoo! Inc. Loses Huge, Long-Time AT&T Inc. Deal to Synacor Inc

The deal will cost YHOO $100M in annual revenue

Yahoo! Inc. (YHOO) has lost one of its large, long-time deals with AT&T Inc. (T) to Synacor Inc (SYNC).

Yahoo, YHOO, AT&T, T, Synacor, SYNCAT&T has signed a deal with Synacor that will have it acting as the host for its mobile and web portals. This moves a fair amount of AT&T’s business away from Yahoo, which has been working with the company for the last 15 years.

The change will cause Yahoo to lose out on an estimated $100 million of yearly revenue from ads. It was splitting ad revenue with AT&T as part of the deal and it likely didn’t require much in the way of resources from the internet company, reports The Wall Street Journal.

Yahoo has been in a tough spot lately due to Facebook Inc (FB) and Alphabet Inc’s (GOOG,GOOGL) Google taking a large portion of the online ad market. It’s also been considering a sale and is facing pressure to do so from activist investor Starboard Value.

SYNC shares were up 138% as of Noon Thursday.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/05/yahoo-att-synacor-yhoo-t-sync/.

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