Media mogul Rupert Murdoch sold the social networking giant MySpace.com and his other web properties to Google for $900 dollars to be paid by 2010. Google will thus be the sole search provider. MySpace currently ranks as the world’s sixth most visited site with the highest internet growth rate. What Google gets out of the deal is the right to de;iver search results and ads to the MySpace network. MySpace is purely a user information generated site, with those users constantly creating new pages of text, photos, videos, and other media every day. The question is whether Google will be able to keep MySpace as the premier destination for social networking sites, and create a profitable business model as other have yet to do. Google entered a bidding war with Microsoft and Yahoo for the social networking crowned jewel, with representatives from those companies circulating speculation that they were intentionally trying to increase the bid that Google was willing to make. Microsoft has already mentioned their intentions to launch a competitor to MySpace. For the target demographic and user of the MySpace site, their time and attention is highly sought after, but harder for advertisers to reach, and because social networking is relatively new, the deciding factor on how successful a company will be in the industry seems to be product/service differentiation.
http://www.ecommercetimes.com/story/hyU1DbO8HQEDFR/Google-Scores-$900 Million-Deal-With-MySpace
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