Google pays big for MySpace's ad space

Google has won a highly prized deal with MySpace to serve Web search and advertising listings to the nearly 100 million members of the News Corp.-owned social network, beating rival Yahoo in the bid.

On Monday, MySpace parent company Fox Interactive Media said it had entered into a pact with Google that spans three years and nine months and gives the search giant exclusive rights to provide Web search results and sponsored links across MySpace. Google will also power search and ads for other Fox Interactive properties, including RottenTomatoes.com and Scout.com, though FoxSports, which is aligned with Microsoft's MSN, is not part of the deal.

Under the terms of the agreement, which will begin in the fourth quarter, Google must guarantee Fox Interactive minimum payments of $900m (£475m) over three years, as long as Fox meets certain traffic and other commitments.

The deal is a blow to Yahoo given that MySpace's advertising results have long been served up by Yahoo's search division. The agreement also ends a months-long hunt by MySpace for a new partner, a quest driven by growing demand among its members for Web search.

Peter Chernin, president of News Corp., said the deal was the first of many steps it plans to take with Google. "We look forward to expanding our relationship into many new areas over years to come," he said.