Yahoo Inc. and AT&T Inc. are negotiating potentially sweeping changes that could scale back their partnership. Wall Street Journal reports that AT&T wants to trim the scope of the partnership with Yahoo! feeling that its partnership with Yahoo Inc. yields fewer benefits than in the past.
Here is the press release from AT&T
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."
