Competitors InfoSpace, LookSmart Join Forces In Internet Search Partnership – Brief Article
Two long-time competitors in the Internet portal directory market, InfoSpace and LookSmart, announced last month that they are teaming up in ajoint distribution agreement to distribute each other’s Internet searching services to their online affiliate networks.
Terms of the deal call for InfoSpace (Bellevue, WA) to provide Internet searching capabilities for certain branded applications provided by LookSmart (San Francisco). In turn, LookSmart will provide its search directory to the InfoSpace affiliate network that consists of more than 3,100 Web sites.
“The deal is a marriage of the core competencies of the two companies,” said InfoSpace founder and chairman Naveen Jan. “It allows both companies to bring to the table what they do best. It enables them to distribute each other’s Internet searching services without having to build it themselves.”
LookSmart chairman and co-founder Evan Thomley echoed Jam’s sentiments when he said that more and more companies are looking to generate revenues through Internet searching. “I expect the deal with InfoSpace to mark the beginning of a long and profitable relationship between the two companies–I look forward to more such partnerships in the future.”
Although neither company would disclose financial arrangements, RDP learned that the deal involves licensing fees and that all revenues derived from the partnership would be divided equally.
According to Internet tracking company Media Metrix, the companies should increase their Internet reach as a result of the deal. As of September, InfoSpace had an unduplicated Internet reach of 92%, while LookSmart’s Internet reach was 83%.
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