Comments on: News Corp, Google Deal Deconstructed

By: Google’s Investment In AOL, Almost A Wash

Google’s Investment In AOL, Almost A Wash — Tue, 28 Jul 2009 04:17:28 +0000

[...] the years. It is not clear how much money it has made back from the $1 billion deal with AOL or from the $900 million agreement with News Corp. It sure would be nice to figure out how much money Google has earned from these [...]

By: Google vs. the Real-Time Web

Google vs. the Real-Time Web — Sat, 23 May 2009 16:01:29 +0000

[...] It’s easy to imagine Google falling further behind in the real-time content game. The company’s slow entry puts it in the position Yahoo has held for years in search: behind the leader, always playing catch-up instead of spending creative energy on new advances. Google has struggled with social content, producing mixed results. Orkut, for example, was a hit in Brazil, but not in other major markets; initiatives like Friend Connect have shown little traction. It’s had better success as a search partner, as with its MySpace deal. [...]

By: Can Internet Free Agents Rescue MySpace?

Can Internet Free Agents Rescue MySpace? — Mon, 27 Apr 2009 21:15:49 +0000

[...] MySpace’s advertising-related deal with Google ends on June 30, 2010. With that a steady supply of revenues — about $300 million in 2009, estimates Pali Capital — is going to dry up. If MySpace indeed gets a new search deal in fiscal 2011 at a 50 percent discount from the current rate, according to Pali, it will have to grow sales by 27 percent organically. Tough targets, don’t you think? [...]

By: With MySpace Changes, a Social Networking Era Ends

With MySpace Changes, a Social Networking Era Ends — Thu, 23 Apr 2009 07:29:10 +0000

[...] DeWolfe ran the company from 2003, helped sell it to News Corp., for $580 million in 2005 and later help negotiate $900 million advertising deal with Google. Since then, MySpace has lost its buzz to Facebook (which is in turn losing that buzz [...]

By: MySpace Yes But No Facebook on Google Phone - GigaOM

MySpace Yes But No Facebook on Google Phone - GigaOM — Tue, 21 Oct 2008 04:59:50 +0000

[...] Malik, Monday, October 20, 2008 at 6:39 PM PT Comments (2) Since Google pays News Corp millions of dollars to be its friend, it is no surprise that MySpace, the elder social networking service would be one of the first [...]

By: MySpace Yes But Facebook no on Google Phone - GigaOM

MySpace Yes But Facebook no on Google Phone - GigaOM — Tue, 21 Oct 2008 02:12:58 +0000

[...] Malik, Monday, October 20, 2008 at 6:39 PM PT Comments (0) Since Google pays News Corp millions of dollars to be its friend, it is no surprise that MySpace, the elder social networking service would be one of the first [...]

By: Oow, Eew, Ouch … Yahoo! - GigaOM

Oow, Eew, Ouch … Yahoo! - GigaOM — Fri, 13 Jun 2008 01:14:49 +0000

[...] Yahoo announced that it is going to use Google for search and contextual advertising. The deal is expected to add $800 million in revenue and between $250 to $450 million in operating cash flow in the first year. As a comparison, Google signed a deal with MySpace for $900 million in 2007 that ends in 2010. [...]

By: GigaOM » Is Google a Media Company?

GigaOM » Is Google a Media Company? — Thu, 01 Mar 2007 23:21:49 +0000

[...] minimums as a key weapon in securing every major deal they’ve closed — including the $900 million guarantee they made to [...]

By: ashkan karbasfrooshan

ashkan karbasfrooshan — Wed, 11 Oct 2006 20:52:57 +0000

I think Google overpaid on this one to defend against MSFT and Yahoo!

The deal assumes that social networks yield the same CTR and have the same rich contextual content that has made Ad Sense a gold mine; clearly not the case on MySpace.

By: Loren Baker

Loren Baker — Mon, 14 Aug 2006 01:45:52 +0000

"How does Google plan to change the behavior of MySpace users and improve click-through and conversion in a non-intent based space (the contextual piece)?"

Chances are that Google Smart Pricing will devalue the PPC ads to the point where the buy is still beneficial to the advertiser, MySpace & Google.

For example, an ad for Razr Phones shows a 50% less conversion rate from MySpace users than the users of enGadget. The advertiser's cost would then lower to the point where they are still experiencing a positive ROI.

Less cost per click revenues for Google & MySpace, but still more eCPM than the current ads being shown.

On the other hand, Google AdSense ads for individual fan targeted Ringtones may actually perform better on MySpace than say, GigaOM. Raising the all around spend on Google Contextual Network & AdWords, while bringing in more for MySpace & Google.

Google is probably benefiting way more from this deal than only the advertising in terms of branding and the tracking of profile and user behavior information, which can then be used to serve more targeted ads to these users as they search and surf on non-MySpace destinations while Google can also use this behavioral information to further enhance their personalized search technology.