News Corp strikes global deal with Google after years of feuding over payments
News Corp struck a global news deal with Alphabet Inc’s Google, the Rupert Murdoch-controlled media company said on Wednesday, in one of the most extensive deals of its kind with big tech.
The companies will develop a subscription platform, share advertising revenue through Google’s ad technology services, build out audio journalism and develop video journalism by YouTube. The deal comes after years of public feuding between Murdoch and Google, most recently in Australia, where Google has threatened to shut down its search engine to avoid “unworkable” content laws.
It is a capstone for the 89-year-old media mogul, his son Lachlan and News Corp chief executive Robert Thomson to seek compensation for premium content from platforms. Murdoch previously secured payments from Apple Inc and Facebook Inc. The company declined to comment on financial details of the deal.
“This has been a passionate cause for our company for well over a decade and I am gratified that the terms of trade are changing, not just for News Corp., but for every publisher,” CEO Thomson said.
The agreement includes titles such as the Wall Street Journal, Barron’s and the New York Post, as well as about 30 local and regional News Corp newspapers in Australia.
The News Corp deal comes after Google agreed to pay $76 million over three years to a group of 121 French news publishers to end a more than year-long copyright spat.
In Australia, the country’s two largest free-to-air TV broadcasters have struck deals with Google collectively worth A$60 million a year, according to media reports. Google has also moved to secure deals with major publishers in the UK, Germany, Brazil and Argentina.
Australia plans to pass laws that would allow it to appoint an arbitrator to set Google’s content fees if it cannot strike a deal privately.