Money From Google Crimping MySpace's Style
from the caught-in-the-crossfire dept
Last summer, News Corp. seemed to vindicate its purchase of MySpace when it signed a $900 million advertising pact with Google. Now News Corp. may be wondering whether it got more than it bargained for when it signed that deal. The Wall Street Journal is reporting that finalizing the paperwork has hit a snag as News Corp. is concerned that the terms of the deal may prevent it from exploring other partnerships. In particular, the company is said to be in talks with eBay to bring “peer commerce” to its social network. It’s not clear whether it makes sense to bring eBay-style auctions to the social networking site, but either way, Google isn’t thrilled about letting its rival have this opportunity; its $900 million payment was in part a defensive measure to prevent other companies from getting at MySpace’s base. Meanwhile, MySpace, which had hoped to play the role of kingmaker by awarding its traffic to the highest bidder, may be feeling a bit like a pawn stuck in the middle of a larger battle.