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Yahoo! Inc. (YHOO - Analyst Report) and popular free anti-virus software developer AVG Technologies N.V. (AVG - Snapshot Report) have entered into a new Search and Distribution relationship. The agreement is aimed at providing secured Internet search experience to Yahoo’s users via AVG's LinkScanner technology.

Founded in 1991, Amsterdam-based AVG Technologies provides antivirus and Internet security products. It produces and develops software for threat detection, threat prevention and risk analysis. Its product portfolio includes Internet security, PC performance optimization, online backup, mobile security, identity protection and family safety software.

AVG has been very active in signing partnership agreements. In 2011, it partnered with an Israeli company Zbang to launch Multimi, a free Windows and iPad app that integrates e-mail, social media and multimedia into one interface. In 2010, it collaborated with Opera Software to provide malware security for the Opera web browser. In 2012, it entered into a partnership with MokaFive to secure desktop virtualization solutions.

Being a leader in security solutions, AVG has been forming strategic relationships. It is equally important for Yahoo to provide unmatched secured services to its users. As per comScore, Yahoo had 57.4 million unique visitors in September, while 498.5 million videos were streamed or downloaded. Further, 44.3 million users used Yahoo! Mail.           

Security is the buzzword in the cyber space. Hacking and virus attacks are quite common incidents. Thus, the role of anti-virus software is crucial to protect computers and sensitive data while surfing the Internet. The partnership between Yahoo and AVG is aimed at providing Internet users the security to surf and work freely.

In the third quarter of fiscal 2012, Yahoo reported revenue of $1.20 billion, which was down 1.3% sequentially and 1.2% year over year. TAC costs were down 17.7% sequentially and 22.2% from last year. Excluding these costs in all periods, net revenue was essentially flat on a sequential basis and up 1.6% from last year, in line with the consensus estimate.

Yahoo has a Zacks #3 Rank (Hold), while AVG carries a Zacks #2 Rank (Buy).

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