Google pay $900m to Murdoch’s MySpace

In response to the potential bid by Viacom for Bebo, Google and MySpace are set to join forces in a three year deal that will give Murdoch’s Fox Network – the owners of MySpace – $900m in exchange for exclusive advertising rights on the social networking site. Fox are set to receive the $900m in revenue share payments by 2010.

MySpace, wisely bought by Fox’s News Corp for $580m, is now attracting more than 250,000 new users per day, and is expecting to reach 100m worldwide users by this week. It’s no wonder that Google have been anxious to strike up a deal with the world’s largest social networking site as the guaranteed watertight advertising revenues will be a welcome relief from the fraud riddled AdWords / AdSense model that Google has come to rely on so heavily.