The
new deal between Google and Fox Interactive Media that calls on Google to power search on
MySpace.com was cheered by analysts at Merrill Lynch. In a report issued Tuesday, research analyst Justin Post wrote that the deal will give Google "exposure to [the] fastest growing property on the
Web." At the same time, he wrote, the agreement "reinforces our view that that competitive efforts from Yahoo and Microsoft will not impact on Google's growth in the near and intermediate term." In a
separate report, analyst Jessica Reif Cohen indicated that the arrangement could help Fox grow its revenue. "The Google agreement is significant in that it addresses one of two areas we previously
indicated could prove to be particularly fertile ground for improvement (i.e., search and improved advertising sales)," she wrote.