Google Extending Ad Space Deal With MySpace

MySpace.com extended a search advertising contract with Google Inc. (NASDAQ: GOOG) by one month as the News Corp.-owned social-networking website tries to secure a new agreement, according to two people with knowledge of the talks.

MySpace claims it will allow users to sync accounts with Facebook to make it easier for users to share messages, photos and games across the Internet.

MySpace’s traffic has fallen short of commitments to Google, having lowered the most recent fiscal year’s income by $100 million, which the company projected in 2009. The site has also struggled with management turnover since News Corp. purchased it for $580 million in 2005.

The unprofitable unit is aiming to be “cash positive” going into 2011, News Corp. Chief Operating Officer Chase Carey said in May.

Read the full article at Bloomberg.