Fox Interactive Media has entered into a nearly $1 billion, 3+ year deal with Google to exclusively power search across most Fox online sites, including Myspace. The partnership will begin in the fourth quarter of this year and extend though the second quarter of 2010.
Teams from Google and Fox say they have been working nonstop for five days to nail down the details on the deal, which was just signed early this morning.
Google will be obligated to make guaranteed minimum revenue share payments to Fox Interactive Media of at least $900 million based on Fox achieving certain traffic and other commitments.
Michael Arrington was on the analyst call with executives from Fox this morning. Fox would not disclose the revenue share percentage, noting only that they were receiving “a majority” of search revenue. The deal will include the integration of a Google search box on all Myspace pages, and Fox also disclosed that they intend to “work with Google” in creating a Myspace toolbar that allows users to extend their Myspace experience beyond the site itself.
Fox also noted that they expect to surpass 100 million Myspace user profiles this month.
This deal will significantly increase total revenue on Myspace, which is estimated to currently be generating about $350 million annually.