Yahoo, Compaq reach sales, marketing deal
January 22, 2001 04:38 PM ET
by Michelle Rushlo
--------------------------------------------------------------------------------
Compaq Computer (CPQ) and portal giant Yahoo (YHOO) reached an agreement today, making Compaq the preferred infrastructure vendor for Yahoo.
As part of the multiyear deal, Compaq will also make a substantial investment in marketing and advertising with Yahoo, but officials said they would not disclose the length or size of the agreement.
"It's huge. It's the No. 1 computer maker and the No. 1 portal and provider of services teaming up," said Jeff Clarke, a vice president of financing and strategy at Compaq. "It really is a co-branding deal."
While the deal does not preclude Yahoo from using other hardware vendors, it makes Compaq the preferred provider of servers, storage, desktops, laptops, handheld devices and related professional services.
In exchange, Compaq will begin selling its computers to consumers and small and medium businesses through Yahoo's shopping section. It will also advertise on Yahoo and use the company's marketing services.
Compaq's stock finished the day down about 3 percent at $19.82 as the PC sector slid on news that Dell (DELL) would not meet earlier earnings expectations. Yahoo was up more than 2 percent, ending the day at $34.69.
Michelle Rushlo is a reporter at UpsideToday covering big-cap hardware and software companies. If you would like to submit a letter to the editor regarding this story, email online@upside.com. |
