Google outbid Yahoo! and MSN for search and advertising rights for MySpace.com…

Google Signs $900M Deal With MySpace

Google has signed a 3 1/2 year, $900 million deal with News Corp. to provide advertising and search to MySpace.com and other News Corp. sites. Starting in October, users will use Google to search for friends and groups on MySpace, as well as generic web searches through the MySpace site. Google will also provide AdSense-based advertising on the popular social networking site.

Google CEO Eric Schmidt has indicated that Google will work to reduce the number of ads displayed on MySpace saying “We are not going to cover MySpace with ads,” and that the company would rather show fewer, more relevant advertising. Currently Yahoo! provides search for MySpace.

Yahoo and MSN were also bidding for search rights on the News Corp. sites. Microsoft has not commented on the deal while Yahoo! issued a statement saying “We only participate in partnerships that also meet Yahoo’s standards. We did not see this opportunity as financially prudent or in the best interest of our advertisers.”

DailyTech reported last month that Google has opened up a new research center in Michigan thanks to heavy tax incentives granted by the local government. The company’s online payment system, Google Checkout, is also gaining widespread support online from a number of retailers including Buy.com, Starbucks, Sports Authority and eCost. Not surprisingly, eBay has shunned the service.

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