Digital Island, Microsoft ink ad deal

Summary:A deal with Microsoft worked wonders for struggling Web hosting company Digital Island, sending its shares skyrocketing Thursday morning. Digital Island has struck a significant new alliance with the software giant, in which it will host Microsoft Network's advertising.

A deal with Microsoft worked wonders for struggling Web hosting company Digital Island, sending its shares skyrocketing Thursday morning.

Digital Island has struck a significant new alliance with the software giant, in which it will host Microsoft Network's advertising.

On Thursday Digital Island stock shot up as much as 145 percent before settling to 90 percent growth in late morning, up $1.93 to $3.93. Microsoft rose 40 cents to $70.80 in late morning trading.

Although the alliance affects a relatively small part of the pages that Microsoft delivers, the company said the deal will amount to 860 million ads per day, a large stream of traffic by any Web standard.

No financial details on the deal were available. Digital Island will be delivering the ads for Hotmail.com, MSNBC.com and the MSN Instant Messenger service, among other sites.

Digital Island also announced this week that it would use software from Novell, a Microsoft competitor, for some of its internal operations. --John Borland, Special to ZDNet News

Topics: Microsoft

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