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