Google in Accord to Pay News Corp. for Content

Google reached a three-year agreement to pay Rupert Murdoch's News Corp. for its content.
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News Corp.  (NWSA) - Get Report reached a three-year deal under which search giant Google  (GOOGL) - Get Report will pay the publishing major for content from its news sites, including The Wall Street Journal.

Terms weren't disclosed. The payments will be "significant," News Corp. said in a statement.

News Corp. will also provide content from sites like Barron’s, MarketWatch and the New York Post in the U.S. 

U.K. content for what's called Google News Showcase will come from publications like The Times, The Sunday Times, and The Sun. Also in the mix: The Australian, news.com.au, Sky News and multiple metropolitan and local titles in Australia.

The move comes at a time when Australia proposed a law to require companies like Google and Facebook  (FB) - Get Report to pay news publishers for their content.

The regulation was being debated as internet giants over the years have taken a major share of advertising revenue from traditional media.

At last check shares of News Corp., New York, were off 1.2% to $23.50. Shares of Alphabet, the Mountain View, Calif., parent of Google, were little changed around $2,108.

The news content partnership also includes the development of a subscription platform, shared ad revenue via Google’s ad-technology services, new podcasts, and investments in video journalism by Google's YouTube.

Robert Thomson, chief executive at News Corp., said in a statement that the deal would have “a positive impact on journalism around the globe as we have firmly established that there should be a premium for premium journalism."

Alphabet CEO Sundar Pichai and the team at Google "have shown a thoughtful commitment to journalism that will resonate in every country," Thomson said.

"I am gratified that the terms of trade are changing, not just for News Corp., but for every publisher," he added.

Two weeks ago Google said that it had begun paying seven local Australian websites under News Showcase.

Google News Showcase, introduced in October last year, is a licensing agreement with news publishers that pays them to curate content for Google's story panels.

Google has reached pay deals with more than 450 publications globally since Showcase launched, the Associated Press reported.