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A Big Deal August 7, 2006

Posted by David Card in Media.

Google got the MySpace deal. That’s gotta hurt at Yahoo and Microsoft. Especially Microsoft, who still hasn’t established its marketplace. If you’re looking to build out a paid search marketplace, and you’re looking for lots of reach and page views, you’re looking at AOL and MySpace, and then a big drop-off. (Yahoo got eBay and AOL re-upped with Google earlier.)

Shouldn’t be any problem hitting $900 million over four years. Even though there’s lots of crummy inventory on MySpace, there’s some evidence that young adults and older teens are using MySpace the way the rest of us use portals like Yahoo. This looks like a win-win for both companies.

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