Digital Web giant Google and MySpace have further extended their search and advertising partnership even though the latter portrays ambiguity about having a future at News Corporation.
Under the context of the extended partnership, both parties involved have proclaimed a multi-year agreement under which, MySpace's search and search advertising part would still be handeled by Google, as it lay initially in the original business deal which had an estimated cost of $900m in 2006.
Besides the above mentioned, digital giant Google will also enable display advertising services on the MySpace which would essentially also include involvement in the Google Display Network and DoubleClick Ad Exchange.
The social networking platform, which has been in problematic conditions for some time now has shown concern in its parent company News Corp about its sustenance as it continues to lose money.
Chase Carey, News Corp's chief operating officer has previously described MySpace's losses as "neither acceptable nor sustainable". However, MySpace was re-launched in last October which was in figures its second redesign in just 24 months in an effort to get back its market share, which it enjoyed earlier.
Carey also continued by adding: "There are opportunities here to do 20 things (with MySpace) but that doesn't mean you're going to do any of the 20. If there's something there that makes sense you ought to think about it."
MySpace commenced business in 2003 and in 2005, which was acquired under the News Corp wing for a bidding price of $580m. And at the growth stages that it was, MySpace peaked with popularity in 2007 having a massive database of over a 100 million users and unfortunately for them, this seldom lasted as users discovered other social networking sites.
Nonetheless, the Digital Media Group was the one who was blamed for the lower search and ad revenues at MySpace by News Corp in August last year. Although News Corp still holds onto MySpace, it seems unlikely that they may have their good times back as they did in 2007.