Yahoo Finance And CNBC Look To Amp Up Engagement With Content Deal

Yahoo (NASDAQ:YHOO) has seen a ton of restructuring and a lot of churn at its top levels in the past couple of months. Under its former CEO, it had announced that it would focus on its media properties. This week, it announced a new content partnership with CNBC. As part of the deal, CNBC will provide Yahoo with news stories and video content that will be featured on Yahoo Finance, and both will create original video content that will be showcased on Yahoo and CNBC’s web and mobile properties. ^[1]

With this move, Yahoo gets access to better, real-time financial news reporting, analysis and videos from CNBC, while CNBC gets to reach Yahoo’s huge online user base. Yahoo aims to make Yahoo Finance one of the most popular online finance portals by providing the best content.

Ross Levinsohn, interim CEO of Yahoo, said:

“Our mission is to create the richest and most powerful experiences for users each and every day. Partnering with CNBC will allow Yahoo Finance to expand its offerings instantly and enhance its position as the most viewed and utilized finance site in the world.”

Yahoo generates a major portion of its revenue from display advertising on its multiple online media properties. It competes primarily with Google (NASDAQ:GOOG), Microsoft (NASDAQ:MSFT) and Facebook (NASDAQ:FB) in this space. Any boost in visitors to its media properties could directly translate in increased display ad revenue, which accounts for nearly 15% of its overall value.

We currently have a $18 Trefis price estimate for Yahoo, which stands nearly 20% above its market price.

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1. Yahoo, CNBC form content-sharing partnership, CNET [↩]