Google has announced a deal with Myspace, owned by News Corp (Fox) to become the exclusive search and keyword advertising sales provider for the mere price tag of $900 million. This deal is slated to begin in the fourth quarter of 2006, ending in the second quarter of 2010.
“Google, which competes with Microsoft and Yahoo in the lucrative business for online search, will use its AdSense program to drive text-based advertising and keyword-targeted ads for Fox Interactive Media's network.”
What poses as news worthy is the fact that Google will also have the right of first refusal on display advertising sold through 3rd parties on Fox interactive media networks. This is a significant amount of power for Google, which hopes to influence Myspace’s millions of users to sell more ads.
“Google will make a guaranteed minimum revenue share payments to Fox Interactive Media of $900 million based on Fox achieving certain traffic and other commitments.”
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