BSkyB (BSY) announced that it has entered into a partnership with Google (GOOG) use the company's search, advertising and video functions on its broadband service.
CEO of the company, James Murdoch said that they would be launching a search portal, proprietory email service and a video-sharing site. He added that it should be ready to go by the spring.
The deal includes revenue-sharing for the click-through advertising results, which will be shared between them. In spite of the agreement, the video sharing portion of the business will still directly compete against YouTube.
Eric Schmidt, Google's CEO told reporters in Longon that he considered this a milestone for the company. He said that this is the first time that Google has 
licensed the use of the YouTube and GMail back-end technology. Schmidt also said that there are plans for other deals like this with other content providers and large media companies.
News Corp. (NWS-A) has a 39 per cent stake in BSkyB. They already have dealings with Google as they supply advertising for MySpace.
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