Expected revenues from the contract are USD 100 million per year, after full product deployment in 2017. Early products will deploy in Q2, with broader services slated to commence deployment in Q4.
The Wall Street Journal reports that the Synacor deal effectively means a loss for Yahoo, which previously managed AT&T's web portals. Yahoo will continue to handle the operator's email services, though a person familiar with the deal said that is a fraction of its prior business with AT&T.
A Yahoo spokeswoman said AT&T is still a “valued partner” but declined to comment further. The deal had given AT&T broadband customers access to Yahoo’s search engine and other media services on the default AT&T website. AT&T and Yahoo had been splitting the search and display ad revenue from the site.
