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MySpace Renews Search, Ad Deal With Google

12/16/10 01:38 PM ET   AP

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Myspace Google Deal

NEW YORK — MySpace has extended its search and advertising deal with online search leader Google Inc. for several years, though it's doubtful that it's worth as much as the original agreement the two signed in 2007.

MySpace said Thursday that Google will continue to power News Corp.-owned MySpace's search and advertising and will provide additional display advertising services. The previous ad-sharing deal between the companies expired in August and was extended for a month while they continued talks.

MySpace is not giving financial terms of the deal. The previous deal was worth $900 million and spanned three years. But ad spending has fallen precipitously on the once-mighty online social hub in the age of Facebook and Twitter. Now, research firm eMarketer estimates that worldwide ad spending on MySpace will be $297 million in 2011, down 37 percent from $470 million in 2009.

Rupert Murdoch's News Corp. bought MySpace for $580 million in 2005. MySpace started to lose its luster after a promising start. In the most recent quarter News Corp. said its "other" business segment, which includes MySpace and the rest of the Digital Media Group, reported an operating loss of $156 million, $30 million greater than a year earlier, mainly due to lower search and ad revenue at MySpace.

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NEW YORK — MySpace has extended its search and advertising deal with online search leader Google Inc. for several years, though it's doubtful that it's worth as much as the original agreement th...
NEW YORK — MySpace has extended its search and advertising deal with online search leader Google Inc. for several years, though it's doubtful that it's worth as much as the original agreement th...
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ClassicLeft
371 Fans
06:12 PM on 12/16/2010
It would make a whole lot of sense if Google bought my space and joined forces with Orkut.
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HUFFPOST SUPER USER
tleb
41 Fans
04:46 PM on 12/16/2010
things move fast in the technology world....
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curiousasheck
109 Fans
04:33 PM on 12/16/2010
Myspace actually shows people have some creativity, talent and flair, unlike the dullards that inhabit the world of Facebook.

No surprise there was some exodus when Murdoch bought it that was inevitable. And at least they are honest about the numbers unlike some other Social Network we all know.
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noob1
30 Fans
04:27 PM on 12/16/2010
Myspace is cool, they seem to be leveraging html5 to create an infinite scrolling experience in some sections.
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HUFFPOST SUPER USER
tleb
41 Fans
04:47 PM on 12/16/2010
I like all the music on Myspace... iLike on facebook doesn't compare...
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