Viacom is reportedly extending a deal with Snapchat, allowing the firm to sell advertising on behalf of the mobile app, according to the Wall Street Journal citing people familiar with the matter.
The firm already has a deal in place with Snapchat which carries content for networks owned by Viacom including Comedy Central and MTV. Snapchat is a mobile app in which photos, videos and messages disappear (unlike Facebook, where they stick around for eternity).
The multi-year deal is reportedly to be discussed in earnings calls on Tuesday by Viacom chief executive Philippe Dauman, said the WSJ.
Viacom will have exclusive third-party rights to sell ads surrounding Snapchat content which includes the pop-up Live Stories that show posts from specific locations or in the holidays for example.
Viacom recently made Dauman its executive chairman replacing Sumner Redstone (the majority owner), while overriding calls for an independent chief from Redstone’s daughter who voted against the executive.
Investor reactions were mixed as a result of the decision. SpringOwl Asset Management, a Viacom shareholder that has spoken out for change was said to be disappointed by the move, while Permanent Portfolio Family Of Funds Inc, the fifth largest voting shareholder in Viacom and CBS favoured Dauman’s appointment.
Meanwhile, Snapchat recently joined forces with the National Football League (NFL) for its Story Explorer feature, and the White House joined the social media service in January reportedly to reach out to a young American audience.
Larry Banks is a keen follower of technology and finance. He has worked for a variety of online publications, writing about a diverse range of topics including mobile networks, patents, and Internet video delivery technologies.