* News Corp and Google renew search and ad agreement
* Terms of the multiyear deal were not disclosed
NEW YORK Dec 16 News Corp's (NWSA.O) social
networking site MySpace and Google Inc (GOOG.O) have reached a
multiyear search and advertising agreement, ending months of
uncertainty surrounding the partnership.
Under the new deal, Google will power MySpace search
results and search advertising as well as provide additional
display ad services.
Terms of the agreement were not disclosed.
Under a 2006 deal, Google had guaranteed $900 million to
News Corp for the right to sell advertisements related to user
searches on MySpace and some other small News Corp websites
over three years.
That deal expired in June but was temporarily extended as
News Corp and Google continued talks. It was not expected that
News Corp would be able to sign an agreement as lucrative as
the original deal. [ID:nLDE68001L]
News Corp also reached out to Microsoft Corp (MSFT.O) and
Yahoo (YHOO.O) about powering search advertising on MySpace.
News Corp acquired MySpace in 2005 for $580 million after
News Corp Chief Executive Rupert Murdoch famously swooped in to
beat rivals like Viacom VIAb.N in the bidding.
But since then, the website became increasingly irrelevant
as a social network for many users as they migrated to
MySpace recently relaunched as a social entertainment site
rather than a direct social networking rival to market leader
News Corp COO Chase Carey told Reuters in November that the
company is open to a sale or partnership with MySpace.
"There are opportunities here to do 20 things (with
MySpace) but that doesn't mean you're going to do any of the
20. If there's something there that makes sense you ought to
think about it," Carey told Reuters recently. [ID:nN29231678]
(Reporting by Jennifer Saba, editing by Matthew Lewis)