Google and Fox Interactive are in the process of turning their “short form” $900 million advertising deal into a more fully negotiated arrangement, according to sources close to the companies. Rumor is that the original deal, which was closed after just a few days of all-night negotiations, has been performing at or above expectations.
There are also, rumors, however, that certain provisions of the agreement may have been negotiated too hastily, and both sides are pushing for changes. We’re also hearing that the deal may be expanded well beyond the original terms, which gave Google the right to show cost-per-click ads after searches and also gave them certain rights of first refusal on display ads.
With so much revenue at stake, these new negotiations may take some time to complete. But Google’s foothold on the largest site on the Internet may be getting even stronger.