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Various reports indicate that Myspace-owner Rupert Murdoch will meet up with Google later this week -- a sign that the media mogul no longer wants to destroy YouTube. At least for now. 

The Telegraph says the NewsCorp chief was “furious” at being rebuffed by YouTube’s founders, only for the video-sharing site to be snapped up by Google for $1.65bn earlier this week.

The acquisition comes only weeks after Murdoch’s COO Peter Chernin said Myspace would “crush” YouTube by ramping up its own video service, but now NewsCorp apparently wants to expand the two firms’ relationship.

When he meets with Google chief executive Eric Schmidt and ad sales VP Tim Armstrong, one option Murdoch is apparently to put forward is an expansion of Myspace's $900m ad deal with Google to include video advertising.

Ross Levinsohn, head of NewsCorp's Fox Interactive Media division, told The Wall Street Journal: "If we can figure out the ways to work with them or integrate with them, that could be really good for us."

Apparently, YouTube’s founders had told NewsCorp that their site was not for sale when the media giant expressed an interest in buying it, and failed to reply to another request for talks when it emerged Google was close to finalising its deal.

According to The Telegraph, NewsCorp is believed to have thought about removing links to YouTube videos on Myspace after the deal – something it already tried last year – but decided against it.

For Google, an expanded ad deal with Myspace would reinforce what a coup the YouTube deal has been, despite concerns over its exposure to copyright lawsuits.

Reports also suggest that Yahoo! is under pressure to speed up its talks with Myspace rival Facebook following the deal.


Published 12 October, 2006 by Richard Maven

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