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August 7, 2006

Google wins the MySpace eyeball auction

Posted by David Hunter at 6:22 PM ET.

The MySpace eyeball auction that has been rumored since May is over and the high bidder is Google:

Fox Interactive Media on Monday said it selected Google Inc. (GOOG.O) as’s search system in a multiyear search and advertising deal that also covers some of Fox’s other properties.

The deal ends months of speculation about which big search company, also including Yahoo Inc. (YHOO.O) and Microsoft Corp. (MSFT.O), would serve MySpace’s popular online teen hangout.

As part of the deal, Google is expected to pay Fox at least $900 million in revenue share payments based on certain traffic and other commitments promised by Fox. These payments are expected to be made from the first quarter of 2007 to the second quarter of 2010.

Currently, MySpace search results were being delivered through a Yahoo partner. TechCrunch has more and a pointer to the formal News Corp. press release which lists all the properties covered by the deal which starts delivering search results in 4Q2006.

Filed under Advertising, Coopetition, General Business, Google, Live Search, MSN, MSN Search, Microsoft, MySpace, Windows Live, Yahoo, adCenter

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5 Responses to “Google wins the MySpace eyeball auction”

  1. Serious Revenue Community google Says:

    Serious Revenue Community google

    The MySpace eyeball auction that has been rumored since May is over and the high bidder is Google: Fox Interactive Media on Monday said it selected Google Inc. (GOOG.O) as’s search … of the deal, Google is expected to pay Fox at least $…

  2. Microsoft second place in MySpace bidding? -- Microsoft News Tracker Says:

    [...] In the “For What It’s Worth” department, it looks like Microsoft came close in the MySpace eyeball auction. Here’s the buzz from Bambi Francisco at MarketWatch: … MySpace began speaking to all four search engines during the last six months, Google, Yahoo, Microsoft’s MSN and InterActive’s to see who’d offer up, among other things, the highest guaranteed upfront revenue for the MySpace and Fox digital properties’ traffic. News Corp set last Friday as the deadline for bids. No one matched Google’s offer, though MSN’s was competitive. Filed under Coopetition, MSN, Google, MSN Search, General Business, adCenter, Yahoo, Windows Live, Online Services, Ad-supported software, Windows Live Search, Microsoft   [Permalink] [...]

  3. Microsoft adCenter reels in Facebook -- Microsoft News Tracker Says:

    [...] If you aren’t familiar with Facebook, it started as a social networking site for US college students, but has broadened to cover the coveted general young adult demographic in the USA. Facebook competes with 100 million registered user MySpace which recently did a mega advertising deal with Google, and that’s likely the biggest part of the story according to Michael Arrington: This news is most notable because the partner that Facebook chose isn’t Google. [...]

  4. Microsoft snags Sprint for mobile search and more -- Microsoft News Tracker Says:

    [...] It’s fundamentally another eyeball auction only instead of a content site like MySpace, a PC manufacturer like Dell, or an Internet service provider like Verizon, it’s a mobile phone service provider. Microsoft presumably has a leg up on the competition in that arena with the providers like Sprint who are already using Windows Mobile to power their phones. Filed under Alliances, Coopetition, Windows Mobile, Google, General Business, Yahoo, Windows Live, Ad-supported software, Windows Live Local, Windows Live Search, Windows Live Mobile, Microsoft, Sprint [...]

  5. New plot twists in Microsoft-Yahoo soap opera | Microsoft News Tracker Says:

    [...] Still, it’s all up to the Yahoo shareholders and which way they jump will mostly be determined by how much money they get upfront and not in some halcyon future. In that regard, Microsoft is rumored to be in talks with Rupert Murdoch’s News Corp. about merging MSN, Yahoo, and MySpace presumably with the objective of having News Corp. help Microsoft offer more for Yahoo. Since Google has the MySpace ad contract, such a plan would provide even more fireworks. [...]

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