Fox Interactive’s Call For A Search & Contextual Ad Vendor Answered: Google; $900 Million Guarantee

The biggest search and contextual ad serving account on the planet, up for grabs for a while, has been taken now: Fox Interactive has signed a deal with Google, where Google will be the exclusive search and contextual ad sales provider for Fox Interactive Media properties, including and IGN.
The deal terms, as outlined in the release:
— Starting Q4 of this year, Google will power Web, vertical and site specific search for and the majority of FIM properties. It is a 3 year, 9 month agreement.
— Google will be the exclusive provider of text-based advertising and keyword targeted ads through its AdSense program, for inventory on Fox Interactive Media’s network.
— Google will also have a right of first refusal on display ads sold through third parties on FIM’s network.
Under the terms, Google will be obligated to make guaranteed minimum revenue share payments to FIM of $900 million based on Fox achieving certain traffic and other commitments. These guarantee payments are expected to be made over the period beginning in Q1 2007 and ending in the Q2 2010.
Updated: Details from the analyst and press conference call:
— Video not part of this deal, but we will have talks with Google on future opportunities.
— is NOT part of the deal, due to its existing deal with Microsoft/MSN.
— This is a standard Google ad-revenue sharing deal where the majority of the revenues comes to the content holder.
— We have been planning on releasing a MySpace toolbar and we will think of integrating it with Google.
— It is an all cash deal.
— We are about to launch IGN properties in UK.
— We are about to cross 100 million people profile on MySpace.
— The deal covers every territory except two countries (not disclosing these two countries).
— We had conversations with Google competitors.
— On the remnant inventory– with which we work with 17 providers–Google will have the first right of refusal for this inventory.
— We find that the largest amount of people leave MySpace to Google…that was the most attractive part in the decision leading to the deal.
— We had been using Yahoo in some parts, and our own technology in others.
— Ross Levinsohn: I am not concerned about the relationship between AOL and Google.
— Early on we were looking fairly closely at video search, and the text search only became more important over late.
More to come….