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Monday, August 07, 2006

MySpace Chooses Google for Search

Stock Tickers: GOOG, YHOO, GLBC, TWX, MSFT

Google (GOOG) has reportedly been chosen as the much awaited search partner by NewsCorp (NWS) for the search function of MySpace. Google must make minimum payments of $900 million to NWS as part of the terms. This has certain metrics and minimum traffic requirements. This also trumps Yahoo! (YHOO) for the MySpace business. This was to be announced "by the end of Summer" according to prior releases from NewsCorp.

MySpace also signed an expansion access pact with Global Crossing (GLBC) this morning, so it has increased bandwidth capabilities.

All of the details between Google and NewsCorp are not yet out and until we see a formal press release from the companies it is not prudent to report more of this.

We will follow up more on this later today as the details become available and after we have confirmation of the other terms.

After-Hours GOOG is up almost another 1% from the close at about $380.00 and YHOO is down 1.2% at $26.76. GLBC closed up about 1% at $15.32 and it is now trading up at $15.38 in after-hours trading. While this is not good for Time Warner's (TWX) AOL or for Microsoft's (MSFT) MSN, neither company was really expected to win the effort.

Jon C. Ogg
August 7, 2006
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