Google: Snag? What Snag?

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In December we reported that Google’s much rumored foray into radio advertisements may be significantly delayed because Google didn’t have access to enough radio airtime for advertisers to test the product. We also reported that Google was working on a deal with CBS Radio to get access to more ad space.

Earlier today, Merrill Lynch Analyst Jessica Reif Cohen said that Google was very close to closing that deal with CBS. And that deal may be much bigger than a simple radio advertising agreement.

It may also include a large payment by Google to buy off any claims CBS may have against YouTube (see our previous post on this) for television content. The sticking point seems to be the size of the revenue guarantee Google will be giving.

On the radio advertising side, Cohen estimates that the deal would lock up 10% of CBS’s radio advertising and generate $200 million or so in revenue.

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