Yesterday, Google bought the rights to supply MySpace, the internet social site, with Search and AdWords services. It didn't come cheap though, at $900 million USDs, Google beat other competitors Microsoft and Yahoo. The $900 million will be payed over three years, in the hope that Fox (the owners of MySpace), will encourage their users to get AdSense. Up until now, MySpace had used Yahoo's Overture service. Omid Kordestani, SVP at Google said, "This agreement demonstrates our commitment to bring the same innovation to monetizing user-generated content that we brought to search advertising. We look forward to other opportunities to partner with News Corp. to the benefit of its community." The current MySpace/Yahoo deal expires in sixty days. The deal with Google will not start straight away, but sometime in the first quater of 2007, and will end in the closing days of the second quater in 2010. The two companies also announced that, "Under the terms of the agreement, Google will be obligated to make guaranteed minimum revenue share payments to Fox Interactive Media of $900 million based on Fox achieving certain traffic and other commitments."
Considering MySpace and Google are some of the two biggest names out there, this could be quite a breakthrough for the internet as a whole. We'll be keeping an eye on this and letting you know if anything big happens.