Tuesday July 17, 11:06 am Eastern Time
AOL Time Warner, Samsung in marketing, tech deals
(UPDATE: recasts; adds details, stock quote)
NEW YORK, July 17 (Reuters) - Internet and media giant AOL Time Warner Inc. (NYSE:AOL - news) and Korea's Samsung Electronics Co. Ltd. said on Tuesday they will team up to develop a new version of AOLTV's set-top boxes and entered into a marketing pact to expand the world's top computer memory chipmaker's brand.
Terms of the multiyear agreements were not disclosed. The deals are not exclusive.
The two companies said in a statement that they will work together to develop the newest version of AOLTV set-top boxes, which will feature TiVo Inc.'s (NasdaqNM:TIVO - news) recording abilities, such as pausing live television.
The co-branded product will let AOLTV members engage in Internet activities such as e-mail and Web surfing while they watch television. AOLTV is the company's interactive TV service that aims to marry Internet features with television.
The companies will also explore development of future consumer electronics and digital convergence products such as wireless, Web terminals and e-mail printers.
AOL Time Warner will also work to expand the Samsung brand and promote the company's products through its online and offline media properties such as Sports Illustrated and People magazines, as well as its Moviefone.com service.
The company also plans to launch a Winter Olympics-related contest with Samsung products as prizes.
``This agreement is another example of AOL Time Warner's unparalleled ability to use the combined strengths of our online, print and broadcast brands to help drive growth for our business partners, and ultimately offer increased value to consumers,'' AOLTV President Robert Friedman said in a statement.
Other pacts that the world's largest Internet and media giant has signed this year also include a marketing component.
Many analysts have said the ability of AOL Time Warner to strike deals with technology companies and offer them a way to promote their services and products over several media has helped it weather the advertising slump hitting the Internet and media sector.
Last week, AOL Time Warner teamed up with Dutch Philips Electronics NV , which makes set-top boxes for the current version of AOLTV, to expand both companies' brands beyond their respective borders.
The companies said they will continue to work together to explore several initiatives in the set-top box arena.
Shares of AOL Time Warner, which reports its second-quarter results on Wednesday, were off 32 cents at $48.04 in morning New York Stock Exchange trade.
(-- Reshma Kapadia, New York technology desk, (646) 223-6191))
