Myspace and Google this morning announced that they have reached a multi-year agreement to renew and expand their search and advertising relationship. It’s unclear how long the deal will stand this time, but three years like the former agreement sounds plausible.
Whether Myspace will still be around when the new deal expires remains to be seen.
Under the terms of the new agreement, Google will continue to power Myspace search functionalities and advertising, and will also provide additional display advertising services.
We’re still digging for further details on the deal, but we should note that the former $900 million deal between Google and the News Corp.-owned company, first announced in August 2006, expired on June 30, 2010. And that there is absolutely no way the agreement was renegotiated on similar terms.
Myspace is on a steady decline in terms of revenues and, more importantly, mindshare and traffic, as it’s clinging on to rapidly growing rival Facebook in an effort to stay relevant despite a recent, deep redesign and a new mobile site and apps.
News Corp COO Chase Carey recently started that the company is open to a sale of the beleaguered social network.
MySpace is one of the world’s largest social networks, with about 125 million users. Originally inspired by Friendster, MySpace quickly grew to become the world’s largest social network, before being overtaken by Facebook. User pages are highly customizable and support integration with widgets such as Slide or YouTube. MySpace provides users with a way to connect around content and culture. MySpace was started as a side project of the internet marketing company eUniverse (now called Intermix Media) in August...
Google provides search and advertising services, which together aim to organize and monetize the world’s information. In addition to its dominant search engine, it offers a plethora of online tools and platforms including: Gmail, Maps, YouTube, and Google+, the company’s extension into the social space. Most of its Web-based products are free, funded by Google’s highly integrated online advertising platforms AdWords and AdSense. Google promotes the idea that advertising should be highly targeted and relevant to users thus providing...