Even though both News. Corp and Google are trying to make sure that the Microsoft/Yahoo merger doesn’t go through, Fox Interactive Media is rumoured to have been in negotiations with Microsoft to take over from the advertising deal with Google on its properties.
The Google-Fox deal was announced in August 2006 which saw Google being obligated to make a minimum revenue share payments to Fox Interactive Media of at least $900 million based on Fox achieving certain traffic and other commitments, but the original deal was done in a hurry. In February 2007, the company was rumoured to be working on a final agreement even though the ads have already been served.
In Google’s haste to keep the deal, according to TechCrunch, they may have paid more than they should.
FIM has two different ad partners, both being Google and Microsoft. This is due to Fox Sports being tied to Microsoft’s MSN portal, and will either be a separate website or replace Fox Sports if the Microsoft/Yahoo deal goes through. This applies to MSNBC, but it most likely replace Yahoo News as Microsoft owns 50% of the site and 18% of the television network, with the remaining shares are owned by NBC Universal.
Since the deal is “confidential”, we don’t know about the termination clauses in the existing agreements, with TechCrunch reporting that Google is appearing that it wish it never had enter that deal.