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Google, MySpace sign multi-year search advertising deal

Google and News Corp's social networking site MySpace have signed a new multi-year search advertisin

The search company will continue to power MySpace's search functions and search advertising, while providing display-advertising services, the companies said today in a statement without disclosing the financial terms or duration of the new deal.

Earlier this year, News Corp chief executive Chase Carey had hinted that a new search contract between the companies is likely to be based on the performance of the social networking site.

MySpace's dismal performance has made its owner News Corp issue a warning stating that the social networking site has "quarters, not years" to get back on the track of profits.

The two companies had signed a similar deal in 2006 in which Google had guaranteed $900m to News Corp for the right to sell ads related to user searches on MySpace and some News Corp sites over three years.