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To: schrodingers_cat who wrote (141920)	4/27/2002 3:22:26 AM
From: H James Morris	Respond to of 164684

It's difficult to say. On one hand, Overture is clearly demonstrating the power of its business model. On the conference call following the report, Overture management suggested that portal partners are investing and focusing on maintaining a solid relationship with their customers. Therefore the complex job of managing 60,000 advertisers is left to Overture, and that's clearly being appreciated, Overture management said. Given the added dollars, it's no surprise. W.R. Hambrecht estimated that Overture's relationship generated as much as $20 million for Yahoo last quarter. Then again, Yahoo's(YHOO: news, chart, profile) huge traffic provides solid distribution. Yahoo also has a relationship with search-engine Google, which is making strides against Overture. "Overture's outlook and the Yahoo deal are linked at the hip," said Brown. Still, securing a relationship with Overture means Yahoo is maintaining strong partnerships, said Brown. "If you have a very small number of key partnerships, there is a risk that you become a hostage to one," Brown said, referring to Yahoo's ties with Google. Overture management did not elaborate on the details. But one thing is for sure, Overture's renewed momentum has some analysts betting it will secure a long-term arrangement with AOL Time Warner, as well. "We continue to believe the AOL deal will be renewed (90 percent confidence)," wrote Merrill Lynch. Overture said that more than 50 percent of its traffic came from its portal partners. This is up from 40 percent in the fourth quarter.