Today Yellowpages.com, a subsidiary of AT&T, announced a multi-year distribution deal with Microsoft. The distribution agreement with Microsoft, expected to launch in April, will include YellowPages.com paid advertising listings on Microsoft’s Live Search and Live Search Maps properties, including MSN Yellow Pages.
This deal replaces the Idearc deal, which was rumoured to be worth more than approx £40 million per year to Microsoft. Therefore it can be expected that the AT&T deal is within that range and although financial terms of the transaction were not disclosed… generally these distribution deals involve a minimum guaranteed payment in exchange for traffic guarantees. The top payment on traffic referrals is usually capped.

“Our network approach to advertiser distribution provides value to businesses on Yellowpages.com properties and beyond,” said Charles Stubbs, president and CEO of Yellowpages.com. “Our agreement with Microsoft supports our commitment to connect advertisers with local consumers and is another significant milestone for Yellowpages.com. We are pleased to be associated with Microsoft and its strong brand.”

With the Microsoft deal, AT&T has now closed exclusive distribution agreements with all the major portals (AOL, Microsoft and Yahoo!). The company also has a reseller agreement with Google.

“This deal is a win-win for both Microsoft and Yellowpages.com — and for consumers and advertisers alike,” said Erik Jorgensen, general manager of Search and Mapping for Microsoft. “Yellowpages.com has local business content that is valuable to our users and enhances their experience, and Microsoft’s reach provides great value to Yellowpages.com advertisers.”