Google forges MySpace search deal

Google, the internet search engine, has signed a deal to handle search and advertising facilities for MySpace, the world's largest social networking website.

    Google will pay News Corp $900m over five years

    The news comes days after Google forged a separate deal with MTV networks to syndicate content from the music video station to websites and blogs.

    Under the terms of the deal, Google will pay News Corporation, which owns MySpace, at least $900 million in revenue-sharing payments over nearly four years.


    News Corporation's Fox Interactive Media unit said it will add Google search boxes to MySpace and other sites with the aim of discouraging people from leaving the website.


    Fox executives said that the main reason users left the MySpace site was to conduct searches on Google.


    The new deal would let MySpace users enter search queries directly on the site, allowing it to retain visitors longer and boost its advertising potential, they said.


    Google in turn will provide search results and keyword advertisements targeted to people's search terms, probably by the end of the year.


    'Seamless' delivery


    Peter Chernin, president of News Corporation, said that the deal would probably be the first of several between the two companies.


    "We're very committed to moving our traditional content on to the web"

    Peter Chernin, president of News Corporation

    "As Google tries to develop their video search, there may be some opportunities to help them in that development," Chernin said on Monday.


    "We're very committed to moving our traditional content on to the web."


    MySpace is the second most popular internet site in the US. Worldwide the site has about 100 million users, 90% of whom are US based.


    Meanwhile, Google's separate deal with MTV Networks would provide videos supported by adverts to website publishers, Google and Viacom, which owns MTV Networks, said in a joint release.


    Tom Freston, chief executive officer of Viacom, said the deal would syndicate some of the most popular shows on MTV and enable the company to distribute its content in "a seamless and targeted way".


    Both companies said that a test version of the service should be running by the end of August.

    SOURCE: Agencies


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