Google Signs 900 Million Dollar Deal With MySpace

Google has reached a deal with the owner of MySpace.com (News Corp.) to pay at least $900-million in shared advertising revenue and become the exclusive search provider for the popular online hangout.

The deal, which marries the Internet’s leading search engine with the top social-networking site, means News Corp. will have essentially paid off the bulk of the $1,2-billion it spent last year to acquire both MySpace and the online video-game company IGN Entertainment.

Under the multiyear deal, News Corp.’s Fox Interactive Media unit will add Google search boxes to MySpace and other sites, likely by the end of the year, and Google will provide search results and keyword ads targeted to people’s search terms. Google will also get first rights to sell any display ads not sold by Fox directly.

Shares of Google increased $4,10, or 1.1 percent, to $377,95 on the Nasdaq Stock Market, while shares of News Corp. rose 2 cents to close at $19,76 on the New York Stock Exchange.

via IOL

Google could have easily got MySpace with almost this amount last year. It also shows Google is finally realizing it can have its hand in every pie but it cannot produce a Google Search Engine everytime. Orkut is not even in the same league as MySpace. It would do Google much good to stop diversifying in so many areas and focus on strategic acquisitions instead.