Blog Post

10-Q Watch: Yahoo’s Restructured Deal With AT&T: $350 Million Upfront Payment

Yahoo (NSDQ: YHOO) restructured its AT&T (NYSE: T) broadband/DSL co-branded deal earlier this year, and at the time, no specific amount was announced, though Yahoo expected aggregate revenue outside of traffic acquisition costs to decline by $150-200 million over 2007 because of the restructuring; Yahoo also expected a $300-400 million upfront payment from AT&T recognized over the life of the contract. Now in its 10-Q for Q308, it has the exact number: $350 million as the upfront it got from AT&T, which was recorded in long-term deferred revenue in Q108 and is being recognized in marketing services revenues over the underlying service period. Also this year, it restructured a similar Verizon (NYSE: VZ) deal, though no specific details have come out for that.