Search-giant Google entered into an agreement to provide search and advertisement services for MySpace back in 2006. The deal was worth $900 million to News Corp.'s MySpace service, then the dominant social networking site on the Internet.
The deal gave Google the right to sell advertisements related to user searches on MySpace and some other News Corp. properties for three years from commencement. It expired in June this year, but was temporarily extended as the pair continued talks on a renewed deal. The pair announced a new deal has been reached on Thursday, but did not disclose the terms.
MySpace lost its position in social networking to Facebook over recent years, and has since re-launched itself as a social entertainment site rather than a direct Facebook rival. Due to its decline since the original deal with Google, MySpace was not expected to reach a deal nearly as lucrative as the original.
MySpace has even reached out to Yahoo and Microsoft Corp. since about possibly powering advertisements across the website. In November, News Corp COO Chase Carey revealed to Reuters that the company is open to a sale or partnership agreement with an interested party.
News Corp. acquired MySpace in 2005 for $580 million after Rupert Murdoch successfully outbid rivals such as Viacom.
Written by: James Delahunty @ 16 Dec 2010 23:00