Nine Formalises Google And Facebook Deals
Nine will be providing Facebook and Google with news content as part of multi-year and multi-million-dollar deals announced to the ASX today.
The deals formalise letter of intent agreements between the tech giants and the media company, which were signed earlier this year as part of the fallout to the ACCC’s News Media Bargaining Code.
In an announcement to the ASX, Nine revealed it had signed two separate deals with each of the tech giants – a five-year agreement with Google and three-year deal with Facebook.
The Google deal will see Nine provide the search company with news content (not including video) for Google’s News Showcase. Google will also ramp up its marketing activity across Nine’s assets as part of the agreement.
Facebook, meanwhile, will be given access to both video clips and digital news articles as part of the deal.
In a letter to staff seen by B&T, Nine CEO Mike Sneesby [pictured] said the new deals will help support the future of journalism.
“These deals will contribute to supporting the world-class journalism on which our business thrives and to give us the opportunity to pursue growth that will continue to underpin the long-term strength of our business,” Sneesby said.
The financial details of each of the deals remain commercial-in-confidence, however Nine has said it expected to see its publishing division’s EBITDA to grow between $30 million – $40 million in the next financial year on the beack of the deals.
It was reported earlier this year that the deal between Nine and Google was worth more than $30 million in cash annually.
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