Google and Microsoft cuddling up to MySpace

Social networking giant MySpace - beloved of teens and bands peddling their tunes - is cosying up to the old school of internet players.

According to the Financial Times, MySpace is in talks with both Google and Microsoft over a tie-up in search technology.

MySpace, which already has some 80 million users, would allow either company to post searches and related ads on the social networking site.

Yahoo! is also said to be in negotiations with MySpace although it is thought to be "less interested" than either Google or Microsoft in doing a deal with the News Corp-owned site.

Social networking sites are now reaching 45 per cent of the active web population, according to data from Nielsen/Netratings.

MySpace rival Bebo, popular with the under 20s, announced yesterday that it has received $15m in funding from a venture capital group Benchmark Capital Europe.