Follow us:

Microsoft Pri0

Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times technology reporter Matt Day.

August 7, 2006 at 2:39 PM

Google wins MySpace.com search/ad deal

Google landed a MySpace-sized fish today. News Corp. has made Google the exclusive provider of search and keyword-based advertising for Fox Interactive Media’s network of properties, including the popular MySpace.com.

Starting in October, you’ll begin seeing Google’s search bar on Fox Interactive sites, including the Seattle-based Scout.com. Fox Interactive Media will continue selling banner-type display advertising on its sites, but any inventory it can’t sell will go to Google to sell after that.

Google will keep an undisclosed portion of the revenue from those advertising sales, but the majority will go to Fox Interactive. Google has guaranteed that Fox will get at least $900 million in minimum revenue-share payments.

The benefits are obvious for both sides. In one fell swoop, Fox Interactive has paid for two-thirds of its Internet investments, executives said in a conference call with analysts and reporters today. And of the people leaving MySpace.com, the biggest chunk left for Google, so integrating Google’s technology into the site might keep users on longer.

Google gets to broaden its advertising-sales network. It gets additional revenue from sales, and it gets to tie up with possibly the hottest site on the Web.

FoxSports is exempt from the deal because of a previous arrangement between News Corp. and Microsoft. News Corp. would not say when that arrangement ends. From the conference call, it sounded like News Corp. dangled the broad search/advertising deal in front of Microsoft and Yahoo! as well, but Google was the most aggressive in responding.

Comments | More in Digital media

COMMENTS

No personal attacks or insults, no hate speech, no profanity. Please keep the conversation civil and help us moderate this thread by reporting any abuse. See our Commenting FAQ.



The opinions expressed in reader comments are those of the author only, and do not reflect the opinions of The Seattle Times.


The Seattle Times

The door is closed, but it's not locked.

Take a minute to subscribe and continue to enjoy The Seattle Times for as little as 99 cents a week.

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Subscriber login ►
The Seattle Times

To keep reading, you need a subscription upgrade.

We hope you have enjoyed your complimentary access. For unlimited seattletimes.com access, please upgrade your digital subscription.

Call customer service at 1.800.542.0820 for assistance with your upgrade or questions about your subscriber status.

The Seattle Times

To keep reading, you need a subscription.

We hope you have enjoyed your complimentary access. Subscribe now for unlimited access!

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Activate Subscriber Account ►