NEW YORK (AFX) - Google Inc. will be the exclusive search provider for News Corp.'s Web sites, including the popular social networking site MySpace.com, with the Web's leading search engine sharing at least $900 million in advertising revenue over three years.
Google will provide text-based advertising and keyword targeted ads through its AdSense network for inventory on Fox Interactive Media's network.
The companies said they expect the integration of Google's services to begin in the fourth quarter 2006. Under the deal, Google will be obligated to make guaranteed minimum revenue share payments to Fox Interactive Media of $900 million based on Fox achieving certain milestones. These payments are expected to be made over the period beginning in the first quarter of 2007 and ending in the second quarter of 2010.
Fox Interactive Media is a network of Web sites which include social networking site MySpace.com, Americanidol.com, Fox.com and Rotten Tomatoes.
Shares of Google added $4.10 to close at $377.95 on the Nasdaq, while shares of News Corp. edged up 2 cents to finish at $19.76 on the New York Stock Exchange. In late-session trade, Google added 1 percent, while News Corp. rose 1.5 percent.
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