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February 2, 2007

Google, Fox Renegotiating and Extending Advertising Deal

Michael Arrington

21 comments »

Fox and Google logosGoogle and Fox Interactive are in the process of turning their “short form” $900 million advertising deal into a more fully negotiated arrangement, according to sources close to the companies. Rumor is that the original deal, which was closed after just a few days of all-night negotiations, has been performing at or above expectations.

There are also, rumors, however, that certain provisions of the agreement may have been negotiated too hastily, and both sides are pushing for changes. We’re also hearing that the deal may be expanded well beyond the original terms, which gave Google the right to show cost-per-click ads after searches and also gave them certain rights of first refusal on display ads.

With so much revenue at stake, these new negotiations may take some time to complete. But Google’s foothold on the largest site on the Internet may be getting even stronger.

  • Sphere It

This entry was posted on Friday, February 2nd, 2007 at 6:53 pm and is filed under Company & Product Profiles. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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  1. Last 24 hours of Google World !!

    February 3rd, 2007 at 2:34 am

  2. Possible Snag in Google/MySpace Renegotiations

    February 6th, 2007 at 11:45 pm

  3. Fox Exploring Termination Of Google Advertising Deal

    February 25th, 2008 at 12:34 am

Comments

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  1. Matt

    February 2nd, 2007 at 7:20 pm

    I know this comment isn’t totally relevant to the story, but Google is really starting to piss me off. I do not want an Internet ruled by one search engine.

  2. Sean

    February 2nd, 2007 at 7:24 pm

    I feel like I’m reading GooCrunch today.

  3. Fashion Industry Ceo

    February 2nd, 2007 at 7:44 pm

    I hate google…why didnt I event myspace! :(

  4. Michael Stone

    February 2nd, 2007 at 8:07 pm

    I don’t think this information is accurate. I’d say that you’ve been the subject of some very savvy corporate SPIN. Pieces of this deal are blowing up. The HAPPY FACE makes it look like things are well because we are, after all, talking about two public companies.

  5. Josh

    February 2nd, 2007 at 8:18 pm

    I would agree with #4.

    Sounds like TC received a sanitized version of the actual happenings.

  6. Matthew

    February 2nd, 2007 at 8:20 pm

    “I do not want an Internet ruled by one search engine.”

    Well I hate to say it but too bad. Yahoo and MSN aren’t exactly breathing down Google’s neck in terms of searches or advertising. Of course MySpace is going with Google, they are the best and going with Yahoo or MSN wouldn’t be worth their time to even sit down at the table to negotiate a deal. For large sites, it’s Google or nothing.

  7. visible.mobi

    February 2nd, 2007 at 9:39 pm

    Something sounds fishy!

  8. Jimmy L

    February 2nd, 2007 at 11:22 pm

    Isn’t Fox suing YouTube? Does that have an impact on the negotiation?

  9. Yohay

    February 3rd, 2007 at 6:59 am

    Two giants splitting the loot.
    Lots of Google news lately: Fox is with Google whilst Viacom is against them…

  10. Rob

    February 3rd, 2007 at 8:01 am

    Michael-

    Way off topic - please think about throwing up a post about this:

    http://digg.com/tech_news/Usin.....d_Jim_Gray

    There are 4000 outstanding HITS of satellite images on the MTurk service. The story is trickling up through DIGG - a post on your site would help get publicity to the incomplete HITS. This is something that all of us can help with.

    -Rob Webb

  11. Rob

    February 3rd, 2007 at 8:09 am

    and feel free to delete these comments once you read them. I just don’t know how to get this to you otherwise.

  12. Rob

    February 3rd, 2007 at 8:16 am

    sorry - there is a more dugg one that just popped up in the tech section:

    http://digg.com/tech_news/Search_for_Jim_Gray

    again, sorry for the pseudo-spam.

  13. manfmnantucket

    February 3rd, 2007 at 8:18 am

    Yes, HELP FIND JIM GRAY it’s URGENT

    I met him and worked with him briefly (a few months) at Digital DBMS in the early 90’s before he moved to MS.

  14. manfmnantucket

    February 3rd, 2007 at 8:22 am

    PS the search for Jim Gray is probably the ultimate “Web 2.0″ story - people banding together online to use Mech Turk to divide and conquer a task otherwise not possible search millions of miles of ocean.

    It’s also a classic Google story: Sergei Brin responded within an hour to the plea for help and offered to harness Google Earth satellite imagery

  15. Scott

    February 3rd, 2007 at 9:46 am

    I think Google needs to focus on making their products less buggy.

  16. Peter

    February 3rd, 2007 at 1:23 pm

    Google having certain rights of first refusal on display ads ?

    That’s a new story !
    Does this mean this is the way Google want it to go ?
    Why not imagine tomorrow that everysite using Adsense will have to comply with this… and you’ve got… a monopoly :)

  17. chrisco

    February 4th, 2007 at 2:02 am

    It seems like the bigger the deal is the less time people spend thinking about it. It’s like the guy who spends 100 hours researching an $800 HDTV before buying it and then goes out and signs a million dollar condo purchase contract without reading and negotiating it.

    And, I agree that they are probably trying to spoon feed some more happy food to the public. For example “certain provisions of the agreement may have been negotiated too hastily” translates to “major f-up!” Probably one or both of the parties had some loudmouths charging into things without thinking about the nuances and what-ifs. And that “performing at or above expectations” translates to this bugger is way out of whack and now someone is or should get fired over it. Cheers!

    -Chris Comella, Founder
    BuzzPal - The World Is Your Party
    http://www.buzzpal.com

  18. John

    February 5th, 2007 at 7:49 am

    My gut feeling is FOX wants a cut of video ads from YouTube videos on MySpace.

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