Overture Extends MSN Deal, Wins Freeserve

Monday was a good day for Overture. The company officially announced an extended and expanded international search distribution relationship with Microsoft Corp., and according to several reports also displaced archrival search provider Google as the Web-search technology provider to Freeserve PLC, the U.K.'s largest Internet service provider.

Freeserve, a unit of France's Wanadoo, has long been a customer of both Overture and Google, using the former for search-page listings in combination with the latter's algorithmic search technology. According to published reports, Overture's purchases of Fast Search & Transfer's Web search unit and AltaVista Co., a unit of CMGI Inc. made the company a one-stop search shop and Freeserve dropped Google altogether a week ago. According to a spokesman, who declined to comment on specifics, Overture and Freeserve will formally announce their expanded relationship next month.

Some experts yesterday pointed out that even though the deal is not yet formally announced and details are scarce, it's an interesting turn of events because this is the first time in many months that Overture has been able to lure a client away from Google.

On the official side, according to a company announcement, Overture has extended its existing paid placement search agreement to provide search results to users of MSN Search in the United Kingdom, Germany, France, Japan and South Korea through December 2004. The original agreement was set to expire in December 2003 and is separate from the company's existing distribution agreements covering the international MSN websites, which also run through December 2004.

At the same time, both the MSN Search and MSN Web site agreements have been expanded to include Overture's recently launched Italian operation, as well as territories Overture plans to enter by the end of 2003, including Spain, the Netherlands and certain Scandinavian markets.

"As a strategic distribution partner since 1998, Overture has consistently delivered high-quality search listings that augment the MSN Search experience by providing our users with broader access to the products and services they are searching for," said Christopher Payne, vice president, MSN.com. "Overture is an integral part of MSN's search development and continues to create unique, customized solutions that enrich the consumer search experience."

Search results on MSN Search and MSN Web sites feature Overture's top three paid placement listings -- generated by its growing worldwide base of 88,000 advertisers -- under the heading "Sponsored Sites." Overture's search listings are generated by advertisers who bid for placement on keywords relevant to their business. The company's editorial team carefully screens these listings before they are distributed to Overture's partner network, which includes some of the Internet's most popular destinations.

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