AT&T and Yahoo talking on expanding their broadband promotion deal

Telecom giant AT&T is currently talking with internet company Yahoo! on the possibilities of expanding their broadband promotion deal.

This was revealed by an inside source who dismissed the rumors in the market that Yahoo! could potentially lose revenue of up to $250 million a year if they fail to renew their deal with AT&T.

The latest discussions between the two companies are focused on a potential mobile phone deal with AT&T’s mobile unit, Cingular. Yahoo! could help AT&T by advertising Cingular on their web properties.

The source said: “It is pretty obvious that the next new thing is mobile services and advertising.”

Yahoo Chairman and Chief Executive Terry Semel had this to say on the latest market rumors: “AT&T and Yahoo have already made adjustments over the years to reflect competitive conditions and the relative benefits each party brings to the relationship. As we continue our conversations, we have a common goal to increase the economic benefits for both parties.”

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