Wow! Google, BSkyB become friemds, with benefits!

In the first global team-up of its kind Satellite broadcaster BSkyB said Wednesday it would tie up with Google Inc. to deploy the leading Internet search company's suite of search, advertising and video functions on its broadband service.

BSkyB CEO James Murdoch told reporters the British firm would launch an online, user-generated video-sharing site, its own e-mail service and a search portal. He said the company planned to have the first of the new offerings up and online by spring and then look to move things ahead "pretty fast."

Can YouTube stay on top?

Revenue generated by click-throughs on sponsored advertising links would be shared between the two. Other financial terms of the agreements have not been disclosed.

BSkyB added that it was also looking at launching a product that would enable users to make calls over the Internet - similar to service offered by Skype..

"I've been waiting for this for a while," Eric Schmidt, Google Chair said at a meeting in London, adding that the significance was boosted as it marked the first time Google had sold the use of the back-end technology of YouTube and GMail.

He said that Google was planning similar deals with other large media firms and content providers. "If we can get this structure right over the next few months and it rolls out, then it becomes the index case for every other country and every other operator."

http://money.cnn.com/2006/12/06/news/international/bc.sky.google.broadband.reut/