google-logoGoogle and News Corp. had entered a deal worth $900 million in August 2006. This deal will soon come to its end, but this soon is still more than a year ahead i.e. in June 2010.

This is being whispered that this deal is not going to be redone by both parties on the previous terms and conditions, as Google is not very happy with most of the things related to My Space. Though My Space might be doing well for itself, Google is by no means happy with it.

Though most of the takings of this deal are to be associated with My Space as it is generating most of the revenue;

Google and Google promoters are not happy with it. The job of My Space is to display search results and advertisements. What My Space is doing is displaying exact Google search results to the users, which of sure won’t be required by the users. If they want Google results, why would they search on My Space?

google-myspace

In this upcoming last year of deal, Google is bound to pay $75 million to My Space. All the latter has to do to get this payment is make certain search page view requirements. This goal is being attained by My Space through showing exact Google results to the viewers. This is something with which Google is very unhappy.

These guaranteed payments have nothing to do with the display advertising, which is going on very well. Google is doing a great job by providing the advertisers an access to innumerable My Space users. But we do not know whether My Space will go for renewal of the agreement on this basis or not.

Source: TechCrunch

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