Google Lands MySpace Deal For $900 million
For those that missed it Google has landed a deal to sell search ads on News Corp.’s fast-growing MySpace Web site. Google will make a guaranteed minimum revenue-share payment of $900 million to Fox Interactive Media, based on Fox achieving certain traffic and other commitments. Now that is a ton of money!
MySpace is a prize for Google. The site’s young demographic is coveted by advertisers, who have difficulty reaching this audience through more traditional media. News Corp., which bought MySpace last year, has yet to turn a profit at the site. MySpace is trying to broaden its audience base by adding content that might appeal to older users. Google will be the exclusive provider of text-based advertising and keyword-targeted ads through its AdSense program, for inventory on Fox Interactive Media’s network. Google will also have a right of first refusal on display advertising sold through third parties on Fox Interactive Media’s network. The integration is slated to begin in the fourth quarter.
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