News Corp. says it has reached a licensing deal with Facebook that lets the social network feature headlines from The Wall Street Journal, the New York Post and other publications on its upcoming news section.
The companies did not give financial details of the deal. Facebook has reportedly been in talks with news publishers to offer "millions of dollars" for the rights to publish their material on its site. The move follows years of criticism over its growing dominance of online advertising to the detriment of the struggling news industry.
Facebook CEO Mark Zuckerberg began talking about a "news tab" on the service in April.
Other publications that had agreed to participate, according to a report in The Australian, include the Washington Post, BuzzFeed News and Business Insider, people familiar with the matter said.
The New York Times has reportedly been in talks with Facebook, but a spokeswoman for the paper declined to comment on whether it had reached a deal.
The deal, for which News Corp will be paid a licensing fee, presented some obstacles due to the Journal's firm digital subscription business model. Now that the issue has been settled, the way is cleared for the product to launch by as early as the end of the month. The financial terms of the arrangement weren't disclosed, The Australian reports.
The licensing fees Facebook is offering range from the hundreds of thousands of dollars per year for smaller publishers to a few million for bigger ones, and substantially higher than that for the very largest outlets, according to people familiar with the matter, The Australian says.