THE TEANS - News

Update 3:36 p.m. PDT: I added more detail about the deal, more background, and comment from Google.

Yahoo announced a nonexclusive partnership Thursday under which Google will supply some search ads to its rival, a move that could increase money generated from Yahoo's search business but that also gives Google even more power in the market.

Yahoo expects the deal to raise $800 million in its first year and an extra $250 million to $450 million in incremental operating cash flow. That's a major increase, given that Yahoo reported revenue of $1.53 billion in its most recent quarter, after commissions are factored out.

"This agreement provides a source of funds to both deliver financial value to stockholders from search monetization and to invest in our broader strategy to transform display advertising and advance our starting-point objectives with users," Yahoo President Sue Decker said in a statement. "It enhances competition by promoting our ability to compete in the marketplace where we are especially well-positioned: in the convergence of search and display."

Shareholders looking for a quick payback should be prepared for a wait, though. The companies are voluntarily delaying implementation of the partnership for up to three and a half months to let the Justice Department review the deal, Yahoo said, a nod to antitrust concerns raised about the deal.

While Yahoo evidently expects a stronger future out of the deal, a tight ... Read more

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Sony BMG signs mobile-marketing deal with Mozes

Posted by Greg Sandoval Post a comment

Sony BMG, one of the top four recording companies, has signed a deal with Mozes, a start-up that connects communities through mobile phones.

Mozes will hand Sony BMG music artists a way to communicate with fans through text and voice messages. Right off, this isn't spam, says the company's CEO Dorrian Porter.

He says Mozes only sends messages to people who have opted into the program. If you're a hard-core fan of musician Teddy Geiger, Porter says, you'll want him texting you with his next concert date or leaving a voice message about an upcoming release (Geiger uses the service, Porter said).

"People want a way to manage their messages," Porter said. "This is a way for people to be in control of who communicates with them on their cell phones."

Under the terms of the deal, Sony BMG artists can send text and voice message updates to fans, who in turn can send their own messages back as well as check out those left by others.

Bands are making their fans aware of the service during concert performances by shouting out their text codes. Concert-goers join the service by texting the performer and opting in.

For Sony BMG, this marketing method can offer a much more directed link to its target communities. Porter said Mozes has deals with a major retailer and NBA team.

Mozes charges companies a monthly fee, but the service is free to consumers. The 22-employee company based in Palo Alto, Calif., ... Read more