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AOL pairs up with CBS
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January 5, 1999: 12:01 p.m. ET
World's largest Internet service provider names CBS its exclusive news partner
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NEW YORK (CNNfn) - ABC News is out, and CBS is in, at least in the eyes of America Online.
AOL, the world's largest Internet service provider, named CBS Corp. on Tuesday as its exclusive provider of broadcast news on AOL and CompuServe. AOL also named CBS as the premier provider of broadcast news on its Web site, AOL.com.
CBS replaces Walt Disney Co.'s (DIS) ABC News as exclusive news partner with America Online, which has 15 million subscribers.
Terms of the deal were not disclosed, but the companies said they agreed on "an exchange of value" for CBS News products featured on AOL and on-air promotion of AOL within CBS News programming. A source familiar with the deal said that payments to CBS would be "in the millions of dollars."
The deal does not include CBS's financial news outlet, CBS MarketWatch.
CBS and AOL will share the advertising revenue generated through areas on AOL which incorporate CBS News programming.
"Our groundbreaking partnership with CBS brings together two industry leaders to better serve both AOL members and viewers of CBS News programs," said Bob Pittman, president and chief operating officer of America Online. "CBS's unparalleled tradition of news leadership promises a new landmark in innovative online news programming for our members. And AOL's integration into CBS News programs will provide their audiences with a fresh, interactive dimension to the viewing experience."
As part of the partnership, CBS will provide AOL with news stories, features, and access to its live events with news personalities and guests.
"Over the next 12 months, AOL members will view half a billion pages with the CBS News logo framing our editorial content," said Mel Karmazin, president and chief executive officer of CBS. "That's a tremendous number of impressions, in a medium that augments our more traditional television and radio audience."
Shares of AOL (AOL) were up 5/8 at 149-7/16 on the New York Stock Exchange following the news, while CBS (CBS) shares were up ¾ at 32-5/8 on the Big Board. 
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