Google Bids to Keep NewsCorp Sweet After YouTube Coup

13 October 2006

LOS ANGELES: As the sound of popping champagne corks dies down at Google and YouTube, the internet search giant must attend to the tremors triggered by its latest acquisition.

Ceo Eric Schmidt has met with executives at the News Corporation empire to ensure the two remain on co-operative terms, especially vis á vis the MySpace social networking site.

Google, which not long ago entered into a $900 million (€700m; £472m) search and advertising tie-up with NewsCorp's MySpace [WARC News: 09-Aug-06], is keen to demonstrate its $1.65 billion purchase of video sharing site YouTube is not competitive.

MySpace, with its 115m registered users around the world, is an important source of traffic to YouTube, which boasts 100m video views per day. However, despite the impressive numbers, the latter has still to make any money.

Google plans to generate advertising revenue from its new acquisition but has yet to reveal its route to potential riches.

Data sourced from Financial Times online; additional content by WARC staff