• by Gavin O'Malley  @mp_gavin, April 11, 2007

Taking advantage of the ongoing rift between Viacom and Google over copyright infringement, Yahoo has scored an exclusive, multi-year deal to provide search and ad services to top-tier broadband sites owned by the media giant. Financial terms of the deal, which could ultimately encompass over 140 sites, were not disclosed.

Yahoo and Viacom have had a relationship for years. Back in 2005, Viacom tapped Yahoo to power both sponsored and organic search listings on its digital properties--including BET.com, CBSNews.com, CMT.com, MTV.com, NickJr.com, Showtime Online, and VH1.com.

Notably, this latest deal excludes Google from doing business on at least 33 of Viacom's choicest entertainment destinations--including BET.com, ComedyCentral.com, MTV.com, Nickelodeon.com, and VH1.com.

The huge win comes at a critical time for Yahoo, as it tries to establish its new Panama search marketing system as a viable alternative to Google's offering. (The latest comScore stats showed Yahoo gaining search share and Google losing some.)

Per the deal announced yesterday, Yahoo will now broker search ads for sites Viacom uses to distribute its TV shows, movies and other premium content online.

"Yahoo has made impressive strides with its new search marketing system," Philippe Dauman, president and CEO of Viacom, said in a statement.

Yahoo Chief Executive Terry Semel said the deal with Viacom "marks the beginning of a powerful and engaging partnership between our two companies."

Before Viacom sued Google's YouTube last month for copyright infringement, Sumner Redstone's company had been negotiating the rights to license video content to Google.

Analysts apparently saw the writing on the wall.

"We are not surprised by Viacom's decision, given its current issues with and lawsuit against Google," Standard & Poor's analyst Scott Kessler said in a research note.

Early response to Panama has been largely positive, as analysts have increased their sales and profit forecasts for Yahoo's first quarter.

Reports of Viacom's interest in supplying a major Internet portal with its content have been circulating all year. The stated intention of the media powerhouse has been to more than triple digital revenues from $150 million last year to $500 million over the next three years.

In an effort to draw more traffic to its Web sites, Viacom earlier this year signed agreements with Yahoo, AOL and TV Guide to make its content available to their video search engines.