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PASADENA, Calif. (CBS.MW) -- Yahoo Japan down, Microsoft MSN to go.
In an effort to establish an early lead in the Japanese paid-listings market, Overture (OVER) said Monday it agreed to be the paid-search provider to Yahoo's Japan Web site.
The nonexclusive, 18-month partnership begins after Overture's planned launch in December along with its paid-listing services to Infoseek Japan, Lycos Japan and NTT-X, which operates the "Goo" portal.
In morning trading, shares of Overture gained 3 percent to $25.08 while Yahoo rose 2 percent to $17.71.
Overture and Microsoft's (MSFT) MSN have already agreed to a test of on the MSN Japan Search Pan and the MSN Japan site. But the Pasadena, Calif.-based Overture didn't say when a formal agreement might be reached.
Overture, which had sales $172 million in the third quarter, withheld financial details of its deal with Yahoo Japan, in which Yahoo (YHOO) owns an equity stake. But in the third quarter, average traffic acquisition cost was $101.4 million, or 59 percent of sales, up from $38.6 million, or 53 percent of sales, in the same quarter a year ago.
Overture has been moving aggressively overseas, building upon its presence in Britain, France and Germany. Overture is expected to incur losses between $20 million and $25 million in 2002 due to its international expansion plans.
In an effort to establish an early lead in the Japanese paid-listings market, Overture (OVER) said Monday it agreed to be the paid-search provider to Yahoo's Japan Web site.
The nonexclusive, 18-month partnership begins after Overture's planned launch in December along with its paid-listing services to Infoseek Japan, Lycos Japan and NTT-X, which operates the "Goo" portal.
In morning trading, shares of Overture gained 3 percent to $25.08 while Yahoo rose 2 percent to $17.71.
Overture and Microsoft's (MSFT) MSN have already agreed to a test of on the MSN Japan Search Pan and the MSN Japan site. But the Pasadena, Calif.-based Overture didn't say when a formal agreement might be reached.
Overture, which had sales $172 million in the third quarter, withheld financial details of its deal with Yahoo Japan, in which Yahoo (YHOO) owns an equity stake. But in the third quarter, average traffic acquisition cost was $101.4 million, or 59 percent of sales, up from $38.6 million, or 53 percent of sales, in the same quarter a year ago.
Overture has been moving aggressively overseas, building upon its presence in Britain, France and Germany. Overture is expected to incur losses between $20 million and $25 million in 2002 due to its international expansion plans.
