Microsoft (MSFT) got a very nice boost to its online advertising strategy. The company formed a partnership with Viacom (VIA). Under the terms, Microsoft will run certain long form and short video programs on MSN and the Xbox 360. It will also get to sell remnant advertising on all of the Viacom sites. Perhaps most important, Redmond’s Atlas ad serving business will handle all of Viacom’s US internet properties.

It is safe to assume that Google (GOOG) would have liked the ad serving deal for its DoubleClick acquisition and that Yahoo! was also anxious to pick up such a large client.

Perhaps, MSFT is actually taking its advertising business seriously now.

Douglas A. McIntyre

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