MySpace, the infamous, social networking website and Google have reportedly inked a $900m deal according to this article at the Financial Times website (after Google outbid Microsoft earlier on). The deal, which is valid through 2010, states that MySpace will receive $900 million from advertising revenue generated by Google. Additionally Google will be in charge of all search related functions on MySpace and on websites that are owned by News Corp. For those unaware, News Corp. outbid Viacom to acquire MySpace last year for $580 million. MySpace is expected to hit 100 million subscribers this week, with more than 250,000 people joining daily.
$900 million, 100 million subscribers, 4 years. Google will have to generate a few dollars per MySpace subscriber over the course of the next four years. Something which seems to be extremely attainable considering the amount of traffic that MySpace receives on a daily basis. Once again Google has been able to strike another huge and beneficial deal, this time with long-term business opportunities as both MySpace and Google said that a broader alliance in 2010 is quite possible after the current deal is over.
