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Microsoft and Viacom ink $500 million ad deal

As part of a wide-ranging deal announced Wednesday, Microsoft has licensed TV and movie content from Viacom, which in turn will let Redmond serve up ads on its U.S. Web sites.

The arrangement means that Viacom will use Microsoft‘s Atlas technology to deliver ads to those sites. Microsoft acquired Atlas as part of its $6 billion Aquantive purchase. Additionally, Microsoft will have the exclusive right to market Viacom’s unsold display advertising space.

Microsoft, meanwhile, will be able to put shows from MTV and Comedy Central and movies from Paramount Pictures onto various products, such as MSN and Xbox, the companies said in a statement. Microsoft already distributes some Viacom content though its Xbox Live Marketplace.

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