TECH CRUNCH -- May 13 -- The landmark search advertising deal between Google and News Corp. is set to expire on June 30, 2010. The $900m deal, announced in Aug '06, has little chance of being renegotiated on similar terms. That means MySpace has just a year left figure out its go forward revenue strategy. The guaranteed payment clauses, which lay out the dates and sizes of the payments due to News Corp., call for $300m to be paid by Google over the final year of the agreement. Here are the revenue guarantees:
Jan 1, '07 - June 30, '07: $50m, paid quarterly pro rata
July 1, '07 - June 30, '08: $250m
July 1, '08 - June 30, '09: $300m
July 1, '09 - June 30,'10: $300m
All MySpace has to do to get the guaranteed payments is make certain search page view requirements. Google is said to be unhappy with the results. Perhaps it’s because MySpace is tricking users into doing Web queries, but click through on ads is rumored to be abysmal, and conversion on those click throughs is even worse.
FULL ARTICLE @ TECH CRUNCH
See all posts on MySpace
See all posts on Google
