Global internet technology giant Yahoo Inc and the world's largest social networking company Facebook Inc have settled a three-months old patent lawsuit and agreed to form a strategic advertising partnership and to expand distribution arrangements.
The agreements include a patent portfolio cross-licence under which Yahoo and Facebook will work together to bring consumers and advertisers premium media experiences promoted and distributed across both the sites. In addition, Yahoo's large media event coverage will be brought to Facebook users, a Yahoo statement said.
Yahoo's interim CEO Ross Levinsohn said, "We are excited to develop a deeper partnership with Facebook, and I'm grateful to Sheryl and her team for working hard together with our team to develop this dynamic agreement.''
"Combining the premium content and reach of Yahoo as the world's leading digital media company with Facebook provides branded advertisers with unmatched opportunity," Levinson further stated.
Yahoo and Facebook are already partners in integration of Facebook Connect with Yahoo Mail, Yahoo News, Yahoo Sports and Yahoo Finance. It will enable them to connect with Facebook friends on Yahoo and share content such as photos, comments etc.
Facebook's chief operating officer Sheryl Sandberg said: ''Yahoo's new leaders are driven by a renewed focus on innovation and providing great products to users. Together, we can provide users with engaging social experiences while creating value for marketers."
Yahoo has integrated a feature called ''Social Bar'' on Yahoo News facilitating an opportunity for marketers to connect their brand messages with the content consumers are viewing and sharing.