Google Thinks MySpace is Hot...or Something..

Google dropped $900 Million today for in an advertising deal and to become the sole search provider for MySpace. Somewhere, Rupert Murdoch is sitting back in a chair, lighting a Cuban, and saying to himself, "Suckers."

So what does Google get out this deal? Sure, they get to add their logo to MySpace search boxes and they get to serve PPC ads when Fox runs out of ads to serve, but is the deal worth nearly a Bill? Currently, MySpace is the second most trafficked website on the Web (trailing only Yahoo) in the United States, but who's to say that will stay that way?

Call me a cynic, but I'm not sure I agree with Google's logic on this one. Sure, MySpace is a great site, and lots of people use it, but how is it sustainable, and more importantly, how are they going to grow it? Not only that, but what happens if a few state governments decide to start regulating how MySpace is used.

Eric, Sergei and Co. were fortunate (i.e. smart enough) to make sure that Fox's MySpace meet certain traffic goals along the way in order to get paid.

Read More: Google, MySpace, Fox