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80,258 News Articles

News Corp upset with YouTube deal

Murdoch's firm riled after missing out

Google executives have held an urgent meeting with News Corp to ease Rupert Murdoch's media giant's concerns over the $1.6bn (about £890m) YouTube acquisition, according to reports.

News Corp was apparently unhappy with the deal, fearing that YouTube’s growing status on the web comes at the cost of its own MySpace social-networking site.

Peter Chernin, president of News Corp, has previously been quoted as claiming that emerging web firms such as YouTube get a free ride by totting up millions of visitors without having to pay for the content they offer.

YouTube believes 20 percent of the views on its website come directly from links from MySpace users, although News Corp executives claim the figures is much higher than that. The media giant has been monitoring the growth of the video-sharing firm closely, but was believed to have been caught napping by Google's decision to buy it.

The Wall Street Journal claims News Corp executives sent a letter to YouTube asking for "an opportunity to participate in the sale process" when it heard of Google’s interest last week, but received no reply.

The meeting between Google and News Corp is said to be key to smoothing relations between the two following the $900m (£485m) advertising deal they signed in August.


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