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Struggling MySpace inks new Google deal

Chocolate Factory loving for Rupert

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MySpace has finally inked a multi-year search and advertising deal with Google.

Financial terms of the agreement between the Mountain View Chocolate Factory and Rupert Murdoch's News Corp, which owns MySpace, were not revealed.

MySpace secured a handsome $900m search and keyword services deal with Google in 2006, but it expired in June, sparking speculation that the search overlord would turn its back on the unloved social networking site.

Google agreed to extend the agreement while it talked with News Corp about renewing terms for the company to sell ads relating to searches on MySpace and some other online properties Murdoch's media empire owns.

It's unclear how much the new agreement is worth, but it presumably didn't generate the same Web2.0 excitement as four years ago when MySpace looked like a much sexier online proposition to search giants.

The original sales, search and ad-sharing deal hinged on News Corp supplying plenty of traction to Google's ad network.

Prior to the deal with Google, Yahoo! had been pumping MySpace with ads courtesy of its Overture service.

The portal, however, lost a bidding war for MySpace's business that included Google, Microsoft and Yahoo.

News Corp paid $580m for MySpace in July 2005. It has consistently struggled to find ways to make some money from the acquisition, which was subsequently pummelled by Facebook.

In November this year, News Corp admitted it could pull the plug on MySpace's entire operation within the year. ®

The smart choice: opportunity from uncertainty

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