Yahoo!, AT&T Issue Joint Release To Stop Speculation
Yahoo and AT&T issued the following release amid speculation today by the Wall Street Journal and others about the value of their partnership which impacted Yahoo as their stock price dropped over 5% today.
SAN ANTONIO, Texas, and SUNNYVALE, Calif., March 9, 2007 – AT&T Inc. (NYSE:T), the nation’s leading broadband, wireless and voice services company, and Yahoo! Inc. (Nasdaq:YHOO), a leading global Internet destination, today responded to speculation regarding their partnership.
As part of our ongoing business agreement, Yahoo! and AT&T are constantly discussing opportunities to expand our relationship and associated revenue streams. Current and future plans include:
· Earlier this year, the companies introduced advertising on the front page of the co-branded portal;
· Later this month, the companies are introducing advertising on their co-branded mail service;
· AT&T and Yahoo! are discussing ways to expand the partnership in the mobile arena, now that AT&T has 100% ownership of Cingular (after its acquisition of BellSouth); and
· Yahoo! services will be introduced into AT&T’s IPTV experience later this year.
According to Randall L. Stephenson, AT&T Chief Operating Officer, “Great partnerships must continuously work together to adapt to changing market conditions and changing strategies. We consider our partnership with Yahoo! a great partnership and want to continue building on our complementary skills and expertise.”
Terry Semel, Chairman and Chief Executive Officer of Yahoo! said: “Our landmark, strategic partnership set the standard and has given Yahoo! and AT&T the opportunity to create truly innovative offerings for consumers and advertisers. AT&T and Yahoo! have already made adjustments over the years to reflect competitive conditions and the relative benefits each party brings to the relationship. As we continue our conversations, we have a common goal to increase the economic benefits for both parties.”