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Yahoo Has Lost a Huge Deal That Brought in $100 Million a Year

This story originally appeared on Fortune Magazine

A lucrative deal for Yahoo is no more after 15 years.

Bloomberg / Contributor

AT&T said Wednesday that it is awarding a portal services contract to Buffalo-based telecom Synacor, which will take over for Yahoo as host of the telecom giant’s web and mobile portals and branded applications.

The Wall Street Journal noted that the partnership had generated roughly $100 million in annual revenue for Yahoo over the course of a 15-year partnership with AT&T, adding that Yahoo will continue to host email accounts of AT&T customers.

Yahoo told the Journal that AT&T remains a “valued partner.”

The deal seems to be a big coup for the under-the-radar Synacor, which provides technology and services to TV, film, and communications companies. Shares of Synacor more than doubled during Thursday trading, with the company’s stock up more than 130 percent in the wake of the AT&T deal announcement. Synacor said it expects to have its initial products ready for the AT&T contract later this year.

Tom Huddleston, Jr.

Written By

Tom Huddleston, Jr. is a contributor for Fortune Magazine.