MyGoogleSpace

The Register reports today that Google is to pay MySpace $900 million to be the search and keyword advertiser on MySpace. Previously the supplier of such services was Yahoo’s overture.

Yahoo! had been pumping MySpace with ads courtesy of its Overture service. The portal, however, has lost a bidding war for MySpace’s business that was thought to include Google, Microsoft and Yahoo.

Fox Interactive, which oversees MySpace for News Corp., also includes web properties such as Foxsports.com, Scout.com and Americanidol.com.

This is, IMO, more interesting for News Corp than anyone else since it seems to demonstrate that their purchase fo MySpace for $580 million was not quite as stupid as people thought, although I am sure that the owners of other hot web sites such as YouTube are looking at the possibility of holding the same bidding war. Just a word of caution for them - News Corp has been on the receiving end of many of these bidding wars because it has bought rights to broadcast numerous sports events with such a process. Somehow I suspect it isn’t as easy as it seems.

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