The deal includes forming the UPI-Microsoft Knowledge Center, a joint technology lab focusing on "Internet delivery and e-commerce solutions," the companies said. UPI chief executive James Adams made the announcement at Seybold today.
In addition, Microsoft will provide technologies and software to begin testing products for the Internet market. "We share synergy on both strategic and tactical fronts, and a vision for the future of the information marketplace," Brian Campbell, general manager of Microsoft's Mid-Atlantic District, said in a statement.
UPI has faced intense competition in recent years, not only from its longtime competitor, the Associated Press, but also from Reuters, Bloomberg, most metropolitan daily newspapers, and television networks such as Fox, NBC, CBS, and ABC. All of them are migrating to the Web. As for Microsoft, the company has made a big push into new media, mainly as a way to sell more software. It also has a deal with NBC.