MySpace And Google Sign Exclusive Deal

MySpace and Google have signed a three-year deal together, with Google paying the Murdoch-owned social networking site around US$900 million (£470 million) in 2007, after beating Yahoo! and Microsoft for the contract.

Under the deal, search behemoth Google will be the exclusive internet search and keyword advertising partner for the Fox network and its growing number of web properties. Google will also have a right of first refusal on display advertising sold through third parties on Fox Media’s network.

Peter Chernin, president and chief operating officer of News Corporation, who negotiated the deal, said: “Our partnership with Google underscores News Corp’s continued evolution to become a powerful force in the digital media marketplace.

“This is an exciting time in our history as a forward-thinking media company and this is just the first of many steps we plan to take with Google. We look forward to expanding our relationship into many new areas over years to come.”

Eric Schmidt, chief executive officer of Google, added: “MySpace.com is a widely acknowledged leader in user-generated content, and incorporating search and advertising furthers our mission of making the world’s information universally accessible and useful.”

MySpace, bought by Fox’s News Corp last year for around US $580 million, is attracting more than 250,000 new users a day, and is expected to reach a total of 100 million worldwide this week.

The deal comes as US media group Viacom is considering a bid for MySpace’s rival site Bebo, after its failure to beat News Corp in the race to buy MySpace last year.

Hitwise has said that Bebo has just overtaken MySpace for the first time ever in the UK based on weekly visits. In the US, however, MySpace continues to be the most visited social networking site.

Google: 020 7031 3000 www.google.co.uk/