MySpace, Google Renew, Expand Search, Advertising Accord for Several Years
News Corp COO Chase Carey
Andrew Harrer/Bloomberg
Charles "Chase" Carey, deputy chairman, president and chief operating officer of News Corp.
Charles "Chase" Carey, deputy chairman, president and chief operating officer of News Corp. Photographer: Andrew Harrer/Bloomberg
MySpace, the social-networking website owned by News Corp., signed a new multiyear search advertising agreement with Google Inc.
Google will continue to power Beverly Hills, California- based MySpace’s search functions and search advertising, and will also provide display-advertising services, the companies said today in a statement.
The previous arrangement with Google expired in June and was extended leading up to MySpace’s redesign, introduced in October. The companies didn’t disclose the financial terms or duration of the new deal. In 2006, Google, owner of the world’s largest Web-search engine, agreed to pay $900 million over three years to place ads on MySpace.
A new search agreement would probably be performance-based and worth less than the previous Google deal, News Corp. Chief Operating Officer Chase Carey said Aug. 4 at an investor conference.
MySpace’s traffic fell short of commitments to Google, lowering the most recent fiscal year’s income on the deal by $100 million, the company projected in 2009. The money-losing site has also struggled with management turnover since News Corp. purchased it for $580 million in 2005.
News Corp., the New York-based media company controlled by Chairman and Chief Executive Officer Rupert Murdoch, rose 5 cents to $14.44 at 4 p.m. New York time in Nasdaq Stock Market trading. Mountain View, California-based Google gained $1.41 to $591.71.
To contact the reporters on this story: Sarah Rabil in New York at srabil@bloomberg.net; Andy Fixmer in Los Angeles at afixmer@bloomberg.net.
To contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net; Anthony Palazzo at apalazzo@bloomberg.net.
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